This article explores the effect that inheritance will have on people’s preparedness for retirement. As the current population continues to age there will likely be a massive transfer of wealth within the near future. There are many people who are likely going to receive some sort of inheritance within their lifetime. The National Retirement Risk Index (NRRI) has put out a recent study that questioned people about how prepared they were for retirement. The study found that the percentage of households receiving inheritances tended to rise with income. This study found that inheritance will have a modest impact on retirement readiness depending on the individual circumstance and how people manage their money.
See Alicia H. Munnell, Will inheritances save retirement?, Market Watch, September 9, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
