The median value for inheritances received by 2004 was $64,000 (in 2005 dollars) assuming a 3 percent rate of return on the inherited assets. These small average inheritances are not going to make a big difference for boomer retirements.
These findings are shocking considering current estimates of a $7 trillion transfer of wealth from the previous generation to the boomers. The AARP report found “that the value of all inheritances for all households in 2005 dollars was just under $12 trillion, with the vast majority of this amount ($9.2) in the hands of pre-boomers and $2.1 trillion held by boomers.”
Considering the retirement problems facing older baby boomers the focus on building retirement assets should become laser focused. Do not depend on a phantom inheritance that may never appear.
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