For years now, there's been a lot of talk about boomers getting tremendous windfalls as their parents pass on. Many boomers, in fact, have been lagging behind in their savings, betting on—hoping for—big bequests, especially since many of them suffered big losses in 2008.
But for a growing number of boomers, things aren't going according to plan. The postwar generation is living longer—and many are spending their savings along the way. And, of course, many of them also took a hit in 2008.
The result is that, as a group, boomers likely won't be getting as much of an inheritance as they hoped. Even worse, far from receiving a bequest, a growing number are tapping some of their own savings to help their cash-strapped parents make ends meet.
Thanks to medical gains, a 65-year-old man has a 60% chance of living to age 80 and a 40% chance of reaching 85. For women, the odds are 71% and 53%, respectively. All of this has made the 85-and-over age bracket the fastest-growing segment of the population. In an era of low interest rates, volatile financial markets, and rising costs for health and long-term care, finding money to cover those years isn't always easy.
In ranking boomers' top financial concerns, affluent investors worry about:
79% Cite rising health care costs.
61% European Financial Crisis
60% Ensuring retirement assets will last a lifetime
55% Being able to afford desired lifestyle in retirement
Source: The Wall Street Journal, June 11, 2012
Elliott Wave International's Chief Market Analyst Steven Hochberg talks with MarketWrap radio on May 10, 2012, about recent market action and where boomers are in the long-term trend, among many other topics.
Listen to Hochberg explain why using lagging economic indicators like earnings as a forecasting tool is like driving down the highway while looking in the rear-view mirror.
Enjoy this free audio clip -- and then take advantage of a limited-time offer to learn even more about EWI's big-picture forecast for U.S. and Europe (see offer details below).
When the markets were still going up at the beginning of 2012, were you warned that they would soon go down?
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