Some people, whether in Cincinnati or elsewhere, are able to retire comfortably while others are not. The difference between the two groups is often thought to be due to one of two things, if not both.
First, it is believed that those who are able to retire more comfortably than their peers had higher incomes than their peers. Second, it is believed that those with more in retirement did a better job saving and investing money for retirement.
In some cases, both of things are true.
However, a new study suggests there is another important factor between those who retire well and those who do not.
Wealth Management recently discussed the study 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.
What the study does show is this: if you want your children to have retirement security, you might need to have an estate plan that helps them achieve that.
Remember: “An ounce of prevention is worth a pound of cure.” When making your estate plans or when probating an estate or administering a trust, do not go it alone. Be sure to engage a Cincinnati estate planning attorney.
For more information about estate planning, probate or trust administration in Cincinnati (and throughout the rest of Southwest Ohio) and to review free resources regarding estate planning, probate or trust administration, visit my website. If you have questions regarding this article or a particular legal matter, feel free to contact me at 513-399-PLAN (7526).
Reference: Wealth Management (May 19, 2017) "Wealth Transfers Boost Retirement Readiness, Social Inequality."