The concept of inheritance after the death of a loved one has often been the subject of many soap operas, movies and fights between relatives but with the population change that we are now facing, this may be a thing of the past. This NY Times article talks of the decline in inheritance due to higher life expectancy and lack of retirement financing.

As more elderly people are having to dip into their savings to make ends meet, pay healthcare and a retirement home, this leaves little to their heirs.

The numbers are interesting though because if we are to believe the predictions for 2050, in the US at least, $25 trillion will be passed from the old to their offspring. This is however only 7 percent of the estates that account for half the aggregate bequests i.e. the rich, and for the rest of the population, the so-called baby boomers must share inheritances with more siblings than the previous generations as well which accounts for further decline.

This idea of working for your children's future benefit or saving up for them is slowly disappearing only to leave behind the harsh reality of saving for yourself and achieving financial independence on your own.

I'm curious as to how this will affect the next generations and the next population waves, will the idea of inheritance disappear altogether? What model will or might replace it? How would you invest your money knowing that you will have nothing to give to your children? How will this change your savings habits, your personal investments during your life?

CATEGORY: AGEING