Social Security Fears, Longevity Change Long-Term Goals
Ken McGlamery has been in the financial advisory business for 25 years and for the first time in his career, he's seeing more clients who are well into their 90s.
“When I talk to clients, I factor in how much things will cost when they’re 90 years old,” said McGlamery, who is a financial adviser with CUNA Brokerage Services Inc., serving members at the $1.3 billion Vantage West Credit Union in Tucson, Ariz. “Life expectancy – now, it's about how to make the wealth last much longer.”
Over the next 30 to 40 years, boomers will transfer $33 trillion to Gen X and Gen Y, according to The Great Wealth Transfer, a 2012 report from Accenture. McGlamery said he is definitely seeing an increase in inheritance transfers. One of his first clients, a 90-year-old member who recently passed away, left a substantial inheritance that is currently being divided up among three children.
For those that see Social Security as their primary means to live on during retirement, McGlamery said he's most concerned for the generations coming after the boomers.