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Counting On Inheritance? AARP Says 'Don't'
80 Percent Of Boomers Haven't Inherited Money
POSTED: 11:19 am CDT June 14, 2006
UPDATED: 11:39 am CDT June 14, 2006
Baby boomers counting on inheritances for their retirement should realize it probably isn't going to happen, the AARP said Wednesday.
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Conventional wisdom has been that boomers could expect to inherit estates from their parents and grandparents that would be big enough to secure their retirements. But the seniors advocacy group has studied federal data and found that as of 2004, just 20 percent of Americans born between 1946 and 1964 reported receiving any inheritance. The median amount received was only $49,000."Many of us dream of an inheritance in the same way we think about winning the lottery," said John Gist, associate director of AARP's Public Policy Institute. "The harsh reality is that for all but the lucky few, an inheritance is a pipedream."The study found just 15 percent of boomers expect to receive an inheritance in the future."This sobering report makes it clear that in the absence of such a windfall, boomers need to look toward Social Security -- combined with savings and, in some cases, pensions -- as the true keystones for peace of mind in their retirement years," said Gist.The AARP said its study was based on an examination of the Federal Reserve's 2004 Survey of Consumer Finances. The Federal Reserve information comes primarily from interviews with more than 4,500 families that are conducted every three years.
Survey:
Conventional wisdom has been that boomers could expect to inherit estates from their parents and grandparents that would be big enough to secure their retirements. But the seniors advocacy group has studied federal data and found that as of 2004, just 20 percent of Americans born between 1946 and 1964 reported receiving any inheritance. The median amount received was only $49,000."Many of us dream of an inheritance in the same way we think about winning the lottery," said John Gist, associate director of AARP's Public Policy Institute. "The harsh reality is that for all but the lucky few, an inheritance is a pipedream."The study found just 15 percent of boomers expect to receive an inheritance in the future."This sobering report makes it clear that in the absence of such a windfall, boomers need to look toward Social Security -- combined with savings and, in some cases, pensions -- as the true keystones for peace of mind in their retirement years," said Gist.The AARP said its study was based on an examination of the Federal Reserve's 2004 Survey of Consumer Finances. The Federal Reserve information comes primarily from interviews with more than 4,500 families that are conducted every three years.
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