A survey of Americans of age 50 or more by The Associated Press-NORC Center for Public Affairs Research revealed that individuals who enjoy an inheritance are twice as much as those without any inheritance feel prepared for their retirement. The same survey also discovered that about 56 percent of respondents believe that it is the responsibility of the adult child to offer their parents' financial assistance if needed.
Inheritance does matter
About 51 percent of respondent adults who are of age 50 and up say that they have received a minimum of one kind of monetary loan or gift from a relative or parent from the time they turned 18. Approximately 44 percent of the older Americans surveyed say that they are recipients of an inheritance from a member of their family or even a loved one. A few expect to receive one in future. Approximately 59 percent of the inheritance enabled older adults say they are excited and not anxious about retirement when compared with 47 percent of the older adults who have not received any inheritance but say the same. In a similar manner, older Americans who are recipients of a financial gift are much more likely to express they are financially secure in the light of paying off mortgages and having the ability to pay off the important unexpected medical expenses.
About 46 percent of the respondents say that it is the responsibility of the parent to offer financial assistance to their adult child if required to do so. It is also found that although African Americans and Hispanics are less probable than whites to benefit from any kind of family wealth, they are most likely to offer any kind of financial assistance to their in-laws or parents.
When compared to those who have no expectation of inheriting any assets from their family members, the older Americans who have received an inheritance are twice as more in all probability be prepared for retirement. This includes those who expects to receive an inheritance in the future. Older Americans who expect to receive or have received an inheritance are in all probability enjoy a retirement account, income from trust funds, other investments and income from physical assets sales.
Trevor Tompson, The AP-NORC Center director, said that it is natural the individuals who receive assistance from their family members suffer from much less anxiety in case of retirement planning.