July 12, 2006 - Posted at 5:52 p.m. CDT
JONESBORO, AR -- As baby boomers get closer to retirement age, many are making arrangements to survive financially. A new study by AARP says most baby boomers will have to spend their twilight years working and collecting Social Security, rather then relying on inheritance from their parents.
"I think that most of them believe that inheritance is, I guess you would call it, gravy. It's something extra," said A.G. Edwards Sr. Vice President for Investments Andy Peeler.
As the oldest group of baby boomers near the age of 62... Many realize the comforts of retirement won't be coming from their parents.
"There are eight children in my family, so there really wasn't a lot to go around," said Batesville native Fred Krug, "But for most people, their parents spend a lot of money on health care, prescriptions and stuff like that and there really isn't much left other then possibly a house."
Krug works around 35 hours a week at the Sleep Starlite Mattress Company in Batesville. When he retires, he plans on traveling with his wife and spending time with his grandson Tyler...but he knows it will cost more in the long run.
"Our generation is going through a rise in gas prices, money we had invested in the stock market that's not there anymore. A lot of people's pensions are not there anymore, so inflation in general," said Krug.
"The rising cost of living certainly makes it more important to put back more money in those times when you are earning the most. As you get closer to retirement age, when you quit working, that income is not there and you need to have a pretty good pool," said Peeler.
But the sure bet for retirement... planning.
"I'm sure some people do feel like they need to work longer and build up more retirement, but if you are building up a retirement for something you can't enjoy, then that's kind of frustrating," said Peeler.
"My wife has been very good about putting money back. IRA's, personal savings accounts, investments and stock markets such as that," said Krug, "So, no, neither one of us expected much from our parents."