Baby Boomer parents with millennial children should talk to their children about their inheritances. The millennials might be counting on larger inheritances than they will actually receive.
Sometimes differences between generations are greatly overblown. Small differences in the percentage of people in one generation that believe something different than a previous generation, get magnified and sweeping statements are made about the generations.
Sometimes there are big differences between generations that are of great importance.
For example, 61% of millennials expect to receive an inheritance from their parents that will help them in their own retirement.
That is roughly twice the percentage of Baby Boomers who think they will get an inheritance according to Financial Advisor in “Millennials Want Family Help in Retirement.”
Many millennials also expect to receive retirement help from their own children. Their other retirement expectations are often similarly unrealistic.
On average, they expect to retire earlier than they probably will and they expect to live fewer years as retirees than is likely.
These misconceptions combine into a big problem for the millennial generation.
By relying on family members and having unrealistic retirement expectations, they risk not saving enough money now. By the time they realize their mistakes, it might be too late to do anything to correct them.
It is important that parents of millennial children talk to them about setting realistic retirement and inheritance goals.
Do not let your children rely on an inheritance, if you know that they are counting on receiving more than they will. If you want to help your children in another way and leave them a larger inheritance, then visit an estate planning attorney to determine what options you might have.
Reference: Financial Advisor (June 6, 2017) “Millennials Want Family Help in Retirement.”