In Their Dreams What Will Boomers Inherit

In Their Dreams What Will Boomers Inherit

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Inheritances are not just the stuff of dreams, but have potentially important personal planning and public policy implications. This AARP Public Policy Institute Data Digest examines the occurrence and expectation of inheritances by the baby boomer cohort, as well as by pre-boomers (born before 1946) and post-boomers (born after 1964). The study finds that about one-fifth of boomer households have received inheritances, and about 15 percent still expect to receive one. Among all boomer families who received at least one inheritance by 2004, the median value was $64,000 (in 2005 dollars), assuming a 3 percent rate of return on the inherited assets. Those with more wealth receive larger inheritances. For those nearing retirement, a large inheritance might be a factor in the timing of their retirement, but only the most affluent are likely to receive such sums. In general, inheritances are unlikely to... have much impact on boomer retirement security
make a significant contribution to most boomers' retirement savings
rescue most boomers if they have failed to prepare for retirement on their own
have much of an effect on labor supply Thus, despite wishful thinking and optimistic projections, inheritances are not likely to bail out the boomers. (10 pages) Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures

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