In the past, adult children could expect an inheritance once their parents passed away. However, seniors now may not be planning on leaving much behind for their kids. Retirees in Missouri might be more focused on their current living needs than having something leftover for an inheritance.
Since Americans now typically live longer than previous generations and costs are rising, seniors must focus on affording living expenses. Health care costs can take up a large amount of a senior’s budget. One company has estimated that retiring couples today use around 67 percent of their Social Security benefits on health care while those retiring in 10 years may spend 90 percent of these benefits on such expenses.
In addition to the rising cost of health care, the disappearance of defined benefit pension plans makes affording costs in retirement difficult and is even harder if a retiree did not save enough money. The economic crisis that started around 2008 did not help, as houses became worth less and portfolios decreased, and many retirees had trouble making ends meet in a down market. Some seniors are intentionally using their savings to enjoy their retirement by spending money on their passions instead of worrying about leaving something for their children. This might be because many retirees have helped their offspring financially already by paying for things like college or weddings.
Individuals and couples alike can determine how to spend the money they have saved for retirement, but it is important for one to make clear how any money or assets should be distributed. Even those who do not think they are leaving much behind could need some estate planning advice from an experienced attorney.