Many seniors are at odds with others over the question of money. Should they spend what they have saved over the years or should they pass it on as an inheritance? At one time it was more common to leave your money to your children. Seniors who had good incomes and were able to invest, ended up with quite a large nest egg. They were able to retire in comfort and still have some left over for their children. With the financial picture changing over the last decade, many seniors have changed their minds about what they would like to do with their savings.
What are the preferences now?
- More men than women believe in spending their savings. They feel their children should find a way to support themselves without an added inheritance from their parents.
- Women’s attitudes are a little different. While they believe in spending some of their savings, they would also like to have something left over to pass on to their children.
- Attitudes vary around the world. In countries with well developed economies, spending your savings is the more popular idea. In those countries where the economies are just starting to get better, leaving money for your children is the more popular choice.
- Globally, less than 50% of children receive an inheritance.
- Most seniors have to cut back on their spending in order to leave an inheritance for their children. With the present economy, for many seniors this is impossible.
- 75% of children want their parents to spend their money. They don’t want their parents to go without and feel that it is their money to spend.
While for many, leaving a financial inheritance for children is no longer as important as it once was, many of the oldest seniors still feel they should leave their children something. To read the article on seniors spending their savings, click here.