Your Retirement Should Not Be Based on Inheritance

As much as we would like to inherit from a family member someday, the possibility of inheritance in the future remains unknown.  To rely on an inheritance from someone else for our retirement is absurd, but is becoming a common belief in American society.  Younger generations are considering inheritance as part of their retirement plan.  Among the affluent, the idea that they will need (or expect) an inheritance is even more common.

This thinking has emerged from longer life expectancies and the younger generations trying to figure out how to save enough for longer life.  Economic factors the increasing cost of living and student loan debt are delaying retirement savings for younger workers.  When they are finally in a position to save, most are in their late 40's or older and time is against them. Never before has a generation needed to rely on personal saving more-pensions are becoming extinct and full social security benefits are starting later for future retirees.  Social Security benefits remain threatened as the number of American workers decreases, along with the taxes to continue to support it.

The increasing income inequality (it’s now much harder to amass savings), not having a stable job and having to pay off student debt, derails the possibility of retirement in comparison to previous generations.  This is a reality younger people are facing when they think of their retirement.

Inheritance is not a guarantee and should not be included in your financial planning. Even if you have debt, student loans, or haven’t had steady employment, it is essential to start saving for your retirement.  If you do receive an inheritance, you’ll have additional resources you didn’t plan for.