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Two-Thirds Of Workers Plan To Fund Retirement With Inheritance, HSBC Finds
With more than 80% of America’s non-farm workers laboring under non-existent wage growth, and with central bank policies serving not only to exacerbate the gap between the wealthy and everyone else while wiping out what’s left of the Middle Class in the process, but also creating conditions whereby pension funds are unable to meet their obligations without assuming inordinate amounts of risk, the idea of a comfortable retirement could become more elusive than ever in the new paranormal. Exacerbating the problem are rock bottom yields on traditional savings vehicles and risk-free assets, and the simple fact that generally speaking, people just aren’t saving enough in a world driven by rampant consumerism. Here’s NY Times on the latter issue:
On average, a typical working family in the anteroom of retirement — headed by somebody 55 to 64 years old — has only about $104,000 in retirement savings, according to the Federal Reserve’s Survey of Consumer Finances.
That’s not nearly enough. And the situation will only grow worse.
The Center for Retirement Research at Boston College estimates that more than half of all American households will not have enough retirement income to maintain the living standards they were accustomed to before retirement, even if the members of the household work until 65, two years longer than the average retirement age today.
Using a different, more complex model, the Employee Benefit Research Institute calculates that 83 percent of baby boomers and Generation Xers in the bottom fourth of the income distribution will eventually run short of money. Higher up on the income scale, people also face challenges: More than a quarter of those with incomes between the middle of the income distribution and the 75th percentile will probably run short.
Fortunately, some forward-thinking members of the world’s workforce have devised a clever workaround (no pun intended): they’ll just rely on funds they imagine they’ll receive when family members die. According to a new study commissioned by HSBC (which has in the past developed its own innovative take on the ‘tax advantaged’ retirement savings plan), one in three working age people are banking on an inheritance to partially or fully fund their retirement. Here’s more:
Many working age people are banking on receiving an inheritance. Almost two thirds (66%) of those who have received or expect to receive an inheritance believe that it will help to fund their retirement, while more than a quarter (27%) expect it will completely or largely fund it.
Unfortunately, these expectations don’t match up particularly well with reality:
Less than a third (32%) of working age people have received an inheritance. While this is more understandable among younger working age people, the proportion of older people who have received an inheritance is also lower - just over a third (36%) of working age people aged 45-64 have received an inheritance, while for those aged 65+, the proportion is still less than half (48%).
And the gap between perception and reality may be growing because ironically, nearly a quarter of those surveyed — and this is the same pool of respondents wherein 66% are betting on an inheritance to retire — indicated that they believe “it is better to spend all your money and let the next generation create their own wealth.” In other words: “I expect the previous generation to fund my retirement, but I’ll be damned if I’m going to pay for my kids to quit working.”
HSBC draws the following conclusion regarding working age people’s assumptions about inheritances:
To avoid disappointment in later life, working age people need to consider what happens if an inheritance is lower than expected - or doesn’t come at all.
And if the survey results presented above are any indication, that conclusion goes double for the children of those who participated in the study.
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ZIRP destroyed inheritances and the PERPS went free.
Now they're planning the crime of the century
Well what will it be?
https://www.youtube.com/watch?v=wrPvZg042RA
The whole concept of retirement is a scam ... give me your money today and I promise you a bunch of stuff tomorrow.
Regards,
Cooter
"Two-Thirds Of Workers Plan To Fund Retirement With Inheritance"
The rest are government "workers" and plan to fund their retirements with government guns to the heads of people with real, productive, jobs.
I willing be retiring on my future lottery winnings and Beanie Baby collection...
"give me all your marney, and ill make some origame, honey"
https://www.youtube.com/watch?v=o-nr1nNC3ds
Courntey Barnett (55seconds in) -
"Two-thirds of Workers Plan to Fund Retirement With Inheritance."
In related news, 77% of elderly have saved less than $40,000 for own retirement.
Yup. not to mention that retirement is simply the point at which your former hobbies become your new profession. I simply cannot imagine a life without purpose. Why not profit from that purpose....especially if you have a Special Purpose.
The Catholic Church worked the same scam... 10% of your gross earnings went to God in Rome in exchange for Paradise in Heaven once you are dead. Pity the bible says there are only 144,000 tickets to heaven... that seemed like a BIG number back in the day... (Revelation 7: 1-17)
Aah when i was a bairn it was Rudolph who had a red nose, now it's the bell-end of a catholic priest.
My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... www.jobs-review.com
Whoring?
Man, did the rich do a number on the rest of us during that non-existent class war that they didn't wage and didn't win against us.
Average American: "I'm going to be incredibly wealthy someday! Either I'll hit the lottery or marry some loaded person. I'm going to be rich, bitch! No inheritance tax for me! No death tax, please!"
Perhaps Americans really are exceptional. Exceptionally dumb counts, right?
I'm sure most of the dumbfucks on here decry the horror of the "death tax" even though only three tenth's of one percent of Americans actually pay the fucking thing. The irony for these horribly uneducated ZHer's is that if the USA had an actual inheritance tax in place the other 99.7% of Americans lives would be immeasurably better. No worries, though.....FREEDOM!!!!!
God I was talking to some dipshit ZHer yesterday in real life about the government potentially infringing on his right to be homeless (we were talking about how bad (embarrassing) it is San Fran). As if losing that "freedom" was something to fight for. You are right, most Americans are dumb as shit.
Well, the dollar is going to be TP by the time they are done with it and EVERYONE will qualify for the death tax at that point (along with a nice fat 40% income tax rate.
Suckers!
Regards,
Cooter
@ silver bullet- Let me get this straight. You are implying that our lives will all be better if we agree to let the government take money from people when they die(money that was already taxed at least once in the first place) before it gets to their heirs? Soooo, since most of that money is spent on warfare that I disapprove of, domestic law enforcement/spying that is unconstitutional, welfare programs that encourage dependence and increase poverty, and interest on the debt that I regard as illegitimate, my life will be better? No thanks. Id rather see it dumped in a hole and lit on fire. At least that way it won't be used to kill people or infringe in their liberties.
You make a fair point. I can't disagree with your premise. I guess I was just hoping some of the tax could go to the thousands of insane homeless people dying in the streets of this country.
The death tax should be gotten rid of because so few actually pay the thing. The few paying are those who didn't hire some estate planner at whatever fees they charge to arrange finances to avoid it. If there's a reason for having it, it is force people to hire yet another government licensed professional to navigate the complex and ever changing laws. People who wouldn't have much to do if government didn't conjure the need for their services into being. Additionally, it's horrid because it's just yet another feel good soak the rich scam of government that simply entraps some naive middle class business owners*.
*Business has land, buildings, and capital equipment worth millions but provides a middle class living for each of the family members owning and running it.
Look above, see my exact post, word for word please. I mean no offense to you, but you are exactly what I'm talking about.
Of course I am what you're talking about, that's why I replied. And you meant offense when you wrote what you initially wrote. That's why you wrote it. Don't retract it now.
The ignorance is on your part as you apparently don't understand what the tax is. You're apparently one of these people who doesn't understand the make-work and scam aspect of having things like that stupid death tax that practically nobody pays or you do understand it and benefit from it in some way.
You come off like one like one of these people who says just hire a such-and-such to take care of it and a lawyer and some other paper pushing government licensed professionals that exist and make a living because of stupid shit like this death tax. Pay them a fee and it's all ok. The tax goes away. What's the fucking point of having a tax that can be made to go away with a visit to appropriate government licensed professional and paying his fee? The government licensed professional's fee, that's what the point is.
The wealthy owners of this country of whom a real inherence tax would break up and make our lives better aren't about to have such a law so let's put that aside in fantasy land where it belongs.
I'll explain it another way. Here in NE Illinois it's up to 6 months in jail for driving the speed of traffic or just slightly above on the limited access highways. Nobody actually goes to jail for it. But they have to pay a traffic ticket lawyer. Guess who made the law that way? Traffic ticket lawyers lobbied for it. That's part of why the speed limits are still set where Nixon decreed them* and these harsh penalties added a few years ago. Speeds that meant a do-it-yourself negotiation in traffic court have now become something one hires a lawyer for. But hey it's no big deal to have a few more parasites for another stupid law now is it?
That's not even the tip of the iceberg of the stupid taxes, fines, fees, and other difficulties that just go away when the right people are hired.
*through political pressure they've relented a whole 5mph to be done at some future date.
I honestly didn't mean offense then, but I do know. You're an idiot. Keep parroting the wishes of the Koch brothers and completely missing my original point while proving that same point concurrently. For that, I say thank you.
Judging by your post history:
"Oh how I love posts from right wing freak shows."
I just logged in to say this:
KOCH BROTHERS!!!#!#!#$$%%^^&^@!!
Get fucked Mr. Left/Right paradigm. Pull that Silver Bullet of propaganda out of your ass.
Sorry brah, you didn't have a "point". You called a bunch of people idiots and then vaguely suggested that higher taxes is what we need.
I am not going to argue your non-point or your non-arguments. That would be affording them a dignity they do not deserve.
Instead, I am going to ask you politely to fuck off and go find a proto-Marxist forum to revel in or to troll, as the mood suits you.
Classic example of someone who can't see beyond the end of their nose. Yes: people are totally dumb for wanting to be free and for realising that freedom includes negative elements as well as positive elements. Yes: you are totally right that something can be obtained for nothing, and that all we need is higher taxes for the "rich" to make everything better.
Don't forget that raising the capital gains tax even a little would leave the world in ashes.
A moving target is this definition of wealth in the eyes of The State. It is but a race to the bottom when measured in terms of State controlled currency.
These are not mutually exclusive issues. The State is out of control and spends like a drunken sailor to feed the wealthy via the middle class. We need to eliminate the Fed, massively reduce the MIC, and do something about healthcare that doesn't involve hospital administrators making more than doctors. But that doesn't change the fact that it costs money to have a functioning society.
I never implied mutual exclusivity. I agree with you completely however, what you demand will not happen in our Circle Jerk of Statism. I am willing to be wrong, but nothing happens until the panem et circensus cease, and either riots start, or individuals start helping each other voluntarily and spontaneously.
Agreed. Nothing is going to change other than getting worse. These fucking sociopaths who run things have set up a control grid that will likely survive even a massive collapse.
Unfortunately, I think you are correct.
Is there value in promoting their agenda as best we can, then pointing to it's failures when they come, and using those failures as a "teachable moment?"
2.11% of the population controls ~40% of total American wealth.
Isn't dumb a physical attribute as in deaf and dumb? Stooooooooooooopid or Thick is more appropriate as many dumb people are extremely clever.
When you look at the amount of resources ( TV Propaganda etc ) spoon fed on an hourly basis to US citizens from cradle to grave , including the school curriculum , it's no wonder most folks are not prepared for life's realities.
The subtle intimidation/threat to anyone not towing or reading from .gov's script ( although written by Goldman & Co ) has created a climate of fear.
The USSA has been relying on contributions from other countries to maintain the illusion. THE PARTY IS NOW OVER as the CAKE is getting smaller and smaller as foreign entities/despots are in fear of their own sheep, unable to cut the 50/50 resource deals of yesteryear. South Africa is a good example of mine workers ready to take a bullet.
Fingers crossed enough folks will take a stance before the Cabal get the opportunity to embark on WW111 in OUR best interests. Am hopeful by what i see in Europe; splits, divisions, independence, decentralisation. Yeah that TWO well really ONE Party System in the USSA has to GO first and foremost.
there are not many loaded ppl to marry anymore////
but then wait....
i know ppl who marry others for money
fucking pricks
all of them.
No, some of us are going to pin our hopes on White collar crime.
Except for the flies, poverty will be fine.
There will be unbelievable growth in the next twenty years. More unicorns shitting rainbows. I'm sure more bad economic reports will be blamed on the weather. In the land of make believe anything is possible
Thanks to ZIRP, NIRP, ever increasing health care and nursing home costs, Filial responsibility laws, tax burdens, fees, it is just so easy to save for retirement. <s>
And, what is there to say that as one gets to "retirement", the goal posts are not moved, or the laws are changed, or Greece and Cyprus were actually patient zero?
It isn't necessarily a world of rampant consumerism as many may believe.
It is everyone is being consumed.
104,000 bucks. A nursing home will eat that up in a few months.
More like a few minutes if you need constant care.
It would be a nightmare to waste away in one of those expired-meat warehouses. When it's time to go, a HST-worthy binge would do the job while allowing one to preserve a modicum of dignity.
I have an agreement that my daughter will shoot me if and when that moment comes. Well, she hasn't actually agreed yet but I'm leaning on her.
Better hope its in something other than dollars!
Heh, heh, heh... Waiting on that "Rich Uncle" they never knew about to die?
Wait in one hand and shit in the other. See which hand fills up faster, ha!
More like this: Move in with now elderly parents or grandparents, take inventory, and begin to discretely but persistently nudge them into their grave via - Profound and unrelenting stress of having elders allocated to child-status and informed of what is going to happen, if necessary, acquiring power-of-attorney status, begin selling the family home and heirlooms. Stroke or fatal heart attack guaranteed in under 2 years.
Just push them down the stair like everyone else…. Come back in two weeks.
picture a fleet of vans.....
down by the river.
Sounds like people are finally starting to listen to Tommy Wu...
https://www.youtube.com/watch?v=HveMAHf2UBg
The boomers themselves aren't going to get much of an inheritance. Most parents of boomers lived through the Depression and they never wanted to trust their money to the stock market. Most went into either US Savings Bonds or money market/CD accounts. Curiously, Savings Bonds purchased in the 80's are now paying at about 5% per annum, which is one hell of a rate in today's environment. But they had to go through a long term to get to this point, and inflation ate up the 5% coupon and then some before today's rates. Money markets and CD's are pretty much paying zero and have been for a number of years, so the parents of boomers are living off of savings as opposed to the interest, so outside of a house that was likely purchased at a very low price and is now pretty valuable (at least until the next bubble bursts) is all the boomers are going to get. However, with the huge numbers of ads for reverse mortgages, and the need to pay for all kinds of medical bills, it wouldn't surprise me if most of the equity in these homes is alrady pledged, meaning even less for boomers.
As for the kids of boomers, you have to be kidding. All they're going to get from their boomer parents is a bill for the funeral services. Boomers are going to spend every penny they have and then some, before they depart the earth.
And I say this as a boomer. We are the most fucked up generation in a very long time.
You are speaking just about yourself I assume.
deleted. :-)
I don't feel guilty. I saw more boomers make sure their kids got a good education, and even a clear shot at college, than I saw Greatest Generationers make sure their kids got. Plus, I saw Boomers courageously stop one filthy evil war, the Vietnam War. I didn't see Greatest Generationers even TRY to stop any filthy evil war. In fact, I STILL see Greatest Generationers cheer every filthy evil new war the MIC/banksters start.
For most ordinary people the stock market takes back any 'gains' and then some. A perpetually 'up' market even if such a thing is achieved has no gains. To have gains in the stock market one must sell. But if the market is perpetually up the stock would need to be repurchased at a higher price to 'gain' again. The only way to make money in stocks for the average person investing in employer sponsored 401K plans is to sell somewhere near the top and rebuy at the bottom. There must be losers in the stock market. The greatest fools must be left holding the bag. Who are they? The retail investors and people with their retirement funds in the market.
Interest on the other hand pays. Well when we had interest it did. Every year one could spend that 3-5% interest and the principle would be untouched. There would be no need to buy back in. That interest payment would happen again and again and again.
Stocks have something like that, dividends. Dividends are largely a thing of the past only now that only stock price matters. Dividends in some ancient stocks payed a large percentage of their market value every year, year after year. That's gone now.
That's how past generations built wealth. Dividends and interest. Not stock price. Stock price is about winners and losers.
Much of this attitude is due to governments passing inheritance taxes.
Many people figure "What the hell. If I leave anything to my heirs the government'll get most of it anyway."
They'll find a better way to pass it on so that the government gets little or nothing.
Even if we go to a cashless society, there're ways.
Being of sound mind and body .... I spent it all .... and I spent the money borrowed from future generations, too !
You cannot borrow from the future as it does not exist (yet). You are simply consuming now, taking advantage of a system that fools people into believing that today's promise will be honoured tomorrow. So, you have over-consumed at the expense of the people alive now and not at the expense of future generations - so, enjoy!
It's worse than I thought ! LOL
Sounds good. Count me in for some quality hedonism.
$104,000 wouldn't pay .... an entitlement family .... 8 months .... but, their rich "uncle" .... gives them more .... every year !!
So what?
I imagine that, throughout most of human history, most people had less saved up at retirement than whatever $104,000 purchases today. So how did they survive? I guess (1) many of them didn't, and (2) many who did, lived in 3-generation or 4-generation households, with their children, grandchildren, and great grandchildren. John and Abigail Adams, for instance, and Thomas Jefferson, for instance. And of course the Caesars.
Historically, most people did NOT live in nursing homes, except a very few very rich.
As for 67% of people hoping to inherit, I imagine most of them will inherit not too much, but that most Ivy Leaguers may inherit nicely indeed. And aren't Ivy Leaguers the people who commissiuon studies like this one? Why do they care?
Fuck old people. They got us into this mess. Greedy fucks.
Strap GoPros on Alzheimer patients and turn them loose into the streets.
Sell the video to foreigners. Use a portion of the profit to care for the patient.
We need to move on this quick! A day late for the free-range pets. Go Pros are much too valuable to strap on typical mentally ill/druggie homeless types.
Nonprofit organisation World For All has put a GoPro on a stray dog and the
https://au.news.yahoo.com/video/watch/27691589/the-heartbreaking-life-of...
Should we put zombie costumes on them first?
Good Luck, because your parents received 0.25% on their savings, they had to get a reverse mortgage and now there is nothing left for you.
What are you babbling on about? .25% is a very recent phenemenon. My parents got, what, 17, 18% govt guaranteed bonds for their savings.
If your retirement broke from 0% interest rates, youre a millenial and you're probably not going to retire unless you take the glamorous career path of welfare queen.
These people apparently never read Dickens
The lawyers will get it before anyone
Relying on an inheritance is a bleak house, indeed.
Where we are going we do not need money only youtube.
Young people these days need to start to consider the possibility that the government won't have their back when they can no longer care for themselves (at least not in a humane and comfortable fashion).
The best solution is a return to larger nuclear families where the children are expected to help out in your later years...possibly by taking over the family enterprise (self-sustaining farm?).
Unfortunately, I believe we need the pending second great depression to beat that idea into the younger generation. They are far too self-absorbed curremtly....
Old fucks can be self-absorbed too. Hence the delema.
Government always has our backs,cant you feel that sharp stabbing sensation?
Try saying ' you live in a fantasy world, you do ' in a Geordie ( Newcastle ) accent.
"And the gap between perception and reality may be growing because ironically, nearly a quarter of those surveyed — and this is the same pool of respondents wherein 66% are betting on an inheritance to retire — indicated that they believe “it is better to spend all your money and let the next generation create their own wealth.” In other words: “I expect the previous generation to fund my retirement, but I’ll be damned if I’m going to pay for my kids to quit working.”"
But but but but but but but but but but but but the Greatest Generation and the Baby Boomers are absolutely archetypal and perfect paragons of impeccable virtue (or so I'm told). Ha. How many times have I said it now? Truly smart people know that the best strategy for avoiding consequences is to die before they manifest. Step 1: Create preposterously unsustainable parasite paradise. Step 2: Drive it like you stole it, (because you did). Step 3: Die before the gravy train finally halts. Bequeath your survivors nothing but unpaid debts.
Here's an absurd notion: retirement is something some people are (ridiculously) lucky enough to happen to be able to afford. "Give them an inch and they take a mile" isn't quite right, it's more like, "plant the entitlement seed and in 2 generations you'll have a dead-ass-broke forest, far as the eye can see".
In a world where the banking mafia take all the surplus then people will have to work till they drop either forever or until enough people figure out you can't have a decent society unless you take out the banking mafia.
The transition will be either be easy (beacause the transition causes a war and we all die at once) or hard (very long depression) or very hard (fast zombie movie for a while followed by a very long depression for the survivors).
Not great.
i thought the days of getting inheritances were over with
at least everyone i talk to isn't getting one and i doubt i will ever get one due to my dad being an asshoe
through out our lives, he always told us that we are not getting a penny
which really pissed me off because he got money from his parents when they died.
anyway a few years ago he was stupid and married a younger woman (probably for his money)
so we children have given up on the thought of getting anything
whatever....
This is shitty and I'm sorry to hear that.
But this is exactly what most of the boomers did that and created the "latch key" kids in the 80s.
Divorce was common. My parents told me in 8th grade (1988) that 50% of the kids we went to school with were divorced.
Hope she was a hotter younger model...
hotter, younger model than what? The dude's mom. That's harsh.
My Aunt Biddy is going to leave me $100,000 and I'm going to invest it in Apple, Google, Twitter, Face book and all the other great stocks out there. I think that should leave me with a comfortable retirement egg? I think that there are some undervalued fracking bonds that can be snapped up for a hefty coupon for use in my golden years. As far as being diversified I'm thinking maybe catch some Greek stocks before anyone figures out what a bargain they are at these prices. In my future Unicorns couldn't be rainbowier.
Inheritance? If you are relying on an inheritance, you had better hope that person doesn't have to go into a nursing home. Once it changes from Medicare to Medicaid, they take all of the assets. I think it's 5 years, now. You have 5 years to change everything over to your name.
"Remaining 34% to Rely on Lottery"