In his latest column for CBS MarketWatch, retirement expert Steve Vernon highlighted a recent survey of workers in 26 countries by Natixis Global Asset Management in which nearly half of the respondents said receiving an inheritance will be part of their retirement plan. And more than three-fourths said they were counting on family support to help fund their retirement.
“Of course, for most people it’s simply wishful thinking to rely on an inheritance or family assistance to fund their retirement,” wrote Vernon in his article, Don’t fall for these retirement planning myths.
For most boomers, it will take at least $500,000 and more likely $1 million in savings to fund a lengthy retirement and have money left over for an inheritance. Unfortunately, these savings amounts are way beyond the resources of most older Americans. In addition to selling and downsizing, older workers can explore using reverse mortgages to help to fund their retirement, added Vernon.