If older members of a family pass on wealth, younger family members often have a more secure retirement.
A new study suggests an important factor between those who retire well and those who do not, is actually whether they receive help from older family members by way of inheritance, according to Wealth Management in “Wealth Transfers Boost Retirement Readiness, Social Inequality.”
The study found that a key factor in retirement readiness is what people receive from previous generations of their family.
Those who receive financial assistance from their parents while their parents are alive and those who receive inheritances, are more likely to have security in retirement. That obviously makes sense.
Someone who receives assets from their parents will have more than someone who does not, even if the two people have the exact same incomes and balances in their retirement accounts.
The study strongly suggests the quality of your children’s retirement can be based on a good estate plan.
An estate planning attorney can advise you in creating an estate plan that fits your unique circumstances.