The economic downturn that started in 2007 had some wide-ranging impact as we all know. However, one of the things that you may not think about is the effect that this debacle had on the inheritances that baby boomers will be receiving.
From June of 2006 to June of 2010 the amounts of the inheritances that were earmarked for members of the baby boomer generation went down by 13% according to research that has been conducted by the Center for Retirement Research at Boston College.
Even people who are relatively comfortable have been damaged by the altered economic playing field. Merrill Lynch conducted a survey that found that 41% of people with $250,000 or more in assets said that preserving inheritances was a priority for them. This figure was 54% in 2009.
Aside from the economic downturn there is another reason why baby boomers should be expecting lower inheritances. Due to advances in medical science and other factors people are living longer lives. According to the United States Census Bureau the group comprised of people 85 years old and older is growing the fastest.
Once an individual reaches the age of 65 there is a statistical likelihood that he or she will live to the age of 80. A 65-year-old woman has a 53% chance of living to the age of 85.
Someone who is planning for retirement should take these statistics to heart. If you have always been confident that you will be inheriting a significant sum of money someday you may want to reevaluate given the statistical trends that we are seeing.
Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.