NEW YORK (MainStreet) – You can't take it with you, but you don't have to leave it behind, either.
A report from HSBC finds that working Americans don't necessarily want to leave their earnings to heirs when they die. For 62% of workers, that means financially supporting another family member. For 43% of retirees, that means providing regular financial support to at least one other person — including 10% who are still supporting at least one of their adult children.
But why give it away when you can use it on your own retirement or just spend it on yourself? HSBC found that 23% of working-age people feel it’s better to spend all their savings while they’re around to enjoy it and let children create their own wealth. Only 9% plan to save as much money as possible to pass on to the next generation.
“Even the smallest amount saved today can contribute to the lifestyle you want in retirement and the legacy you hope to leave,” says Andrew Ireland, executive vice president and head of premier banking for HSBC Bank USA. “Those who fail to plan may find that any kind of inheritance is unlikely and also that a comfortable retirement is beyond reach.”
As retirees often find out, the choice between a comfortable retirement and a financial gift to the kids is one they end up making on the fly. HSBC found that 59% of working-age Americans expect to leave a financial legacy to their children, but only 31% of grown children report actually getting one.