Personal Finance

Nearly 60% of Boomers Plan to Leave No Money Behind for Others - Is It Selfish or Justified?

Joey Frenette

Published: November 26, 2024 11:09 am

In a prior piece titled “Nearly 70% of Gen-Z plans to leave retirement savings behind for others — how does that compare to other generations,” I touched on the 2024 national security survey, which showed that younger generations were likelier to leave more of their nest egg behind for others, while older generations were more likely to spend more for themselves with the intent of leaving less behind.

Undoubtedly, the survey may suggest that Baby Boomers are selfish while Millennials and Gen Z are more generous. Though the survey results were remarkable, I would warn against making any such conclusions, given things can change with time.

Who knows? In 25 years from now, Millennials may become a bit more selfish as they near their retirement. Perhaps it’s folks from Generation Alpha, Millennials’ children, who report being more willing to leave a bigger chunk of their retirement for loved ones or causes.

In any case, I wouldn’t go as far as to label the nearly 60% of Boomers who plan to leave no money for others as selfish. Much of the wealth that Boomers are hanging onto will, in due time, transfer to younger generations, most notably the Millennials, whether they like it or not.

Additionally, it’s not hard to imagine many retired Boomers are sitting on a wealth of assets, with far more than they’d ever be able to spend in retirement.

Key Points About This Article

• A lot of Baby Boomers surveyed prioritize their own needs in retirement.
• Despite having around 60% not planning to leave anything behind, many of them aren’t as selfish as you’d think. In fact, they may be more realistic.

The survey results made Baby Boomers appear selfish—but here’s why they’re probably not.

In numerous prior pieces, I outlined that as retirees aged, their expenses would shrink. Indeed, advanced age entails less spent on things like travel, leisure, and luxury, with more of the budget allocated towards unfortunate but necessary things like long-term care and other health-related costs. Indeed, many Boomers who’ve built up a fortune probably won’t be able to spend it all in their lifetime, even if they wanted.

Even if the idea of spending the entirety of one’s retirement fund may seem selfish to some, I’d argue that it’s unfair to judge how people choose to spend their hard-earned wealth. Further, the folks who don’t want to leave behind a big, fat inheritance may be very generous in giving to charitable organizations or gifting to loved ones around the holidays.

Also, I covered the hidden dangers of giving away large sums of money to one’s children. Indeed, if you’re expecting a large inheritance or are being spoiled with financial gifts every so often, you’re probably not going to feel as motivated to work hard for your money. That is, unless the child has been taught the right lessons as well as the value of the dollar.

Ironically, planning on giving away too much of one’s cash to a child may be the more selfish move, especially if one hasn’t taught their children the value of independence and being the best that they can be.

The bottom line

In any case, I think it’s unfair to label the 60% of Boomers who didn’t plan to leave behind money for others as selfish. If anything, they may be overestimating expenditures later in retirement that they may see as a drain on their nest egg.

Just have a look at how much long-term care costs, and you’ll probably feel a bit less confident you’ll have much of a nest egg you’ll leave behind.