Americans aged 18 to 60 say they are relying on an inheritance for their long-term financial stability.
Overall, one-third of Americans report that they are counting on a bequest of money from a relative, though younger respondents were more likely to rely on someone else’s finances for their own future, according to a new study.
Michael Rotondo, dubbed the ‘evicted Millennial’ last month, may epitomize the trend after his parents took him to court to force him to move out of their home in upstate New York. Rotondo fought them along the way, eventually moving out on May 31.
Michael Rotondo was dubbed the ‘evicted Millennial’ in May 2018 after the 30-year-old’s parents took him to court in an effort to evict him from their upstate New York home. He moved out on May 31
Only 20 percent of Baby Boomers declared an inheritance was critical for their finances, compared with 36 percent of Generation X and 32 percent of Millennials, according to the Merrill Edge survey by Merrill Lynch.
The youngest respondents (Generation Z, aged 18-22) were the most likely to be relying on their parents, with a whopping 63 percent reporting an inheritance was crucial to their financial future.
‘We’ve never seen such a strong reliance on receiving an inheritance,’ said Aron Levine, head of Merrill Edge, in a statement. ‘With shifting priorities and growing lifespans, Americans are finding new ways to ensure their financial stability and are increasingly looking to others.’
The biannual report doesn’t indicate confidence in the economy among the generation of people born after 1995, as they already look to others for enduring financial security just as they begin to enter the workforce.
Levine said younger Americans aren’t necessarily depending on their parents’ money to be the solution to all their problems, but as a way to help navigate challenges their parents never faced, such as massive student loans.
Americans of all ages are counting on an inheritance for their long-term financial future. The youngest Americans (age 18-22) were the most likely to be relying on an inheritance
For younger generations, ‘it really comes down to competing financial priorities,’ including student loans that are dramatically more expensive than what their parents owed, said David Poole, head of Merrill Edge’s advisory client services.
‘They’re contending with multiple sources of debt and then other competing priorities: purchasing a home, getting married, having children and saving for their children’s college – I think the prospect of all those competing priorities is overwhelming,’ Poole said.
Surveyors interviewed more than 1,000 affluent Americans for the study, which also found that many respondents aren’t just counting on others for an inheritance – they look to outside input for decisions on investing money (36 percent) and retirement (22 percent).
Despite that uncertainty, a plurality of Americans (57 percent) said they turned a profit in the stock market in the past year, with Baby Boomers (68 percent) and Generation X (67 percent) reporting the most financial gains, according to the report.
Mark and Christina Rotondo sit in court as they attempt to evict their 30-year-old son out of their home. The 30-year-old fought their efforts until he finally moved out on May 31