A new study on the expectations of young people is very disturbing.
A large percentage of 18-22 year-olds are expecting that their retirements will be funded by the inheritances they expect to receive from their parents, according to a recent survey. This could mean they are spending all their own money and not saving any of it, according to Bloomberg in "Rich Kids Are Counting On Inheritance to Pay for Retirement."
When one looks deeper into the situation, however, the young people in the survey are not wasting all their money. They have a lot more expenses at their age than older generations did. This is in part due to student loan debt. House prices are also continuing to rise in urban areas, and incomes for those just starting out have remained mostly stagnant for many years. For now, the kids cannot afford to save. That might change in a few years as they grow into their careers.
An experienced estate planning attorney can advise you on creating an estate plan that fits your unique circumstances, and that may include how to wisely leave an inheritance for the next generation.
Reference: Bloomberg (June 7, 2018) "Rich Kids Are Counting On Inheritance to Pay for Retirement."
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