Personal Finance

I'm single and set to inherit $5 million - can I take my foot off the gas when it comes to saving for retirement?

Aaron Webber

Published: January 7, 2025 8:30 am

As a society, we seem to have entirely lost the plot when it comes to work, money, and the value and utility of both. Human beings love working, we love being a part of something bigger than ourselves, but when that work turns to soul-sucking servitude or comes at the sacrifice of our health, family, and enjoyment of life, why are we doing it?

One rich person was wondering if they should keep working or saving for retirement after learning they will inherit a huge amount of money. They took their concerns to the r/RichPeoplePF community, a group of individuals who are “too rich for r/personalfinance”. This is a community that is sure to be totally in touch with reality.

The Question

The author of the post is in their 30s, single, and is set to inherit almost $5 million. They live in an apartment that they have paid off and have around $50k in investments. They admit they have almost nothing in their retirement savings, though they contribute to it regularly.

The author wanted to know if they should still continue saving for retirement if they are going to inherit so much money. Is it even worth it?

Please keep in mind that all the responses are opinions, including this article. Please do not take anything in the original thread as legal financial advice.

The Community Response

There were two primary points made by the majority of the responders to this post.

First, you should never count a promised inheritance as your own until you actually have it. Even if the person giving you the money entirely intends to give it to you, there are innumerable things that can prevent that from happening: lawsuits, unforeseen costs and expenses, end-of-life care, and more. Any honest financial expert will tell you that it is pointless to make plans with inheritance in mind when it isn’t yours yet.

That’s why most commenters recommended the author continue to contribute to their retirement account, and maximize their contributions if they can afford it (within reason).

Second, that money might be worth much less when or if they actually inherit it. If the author finally receives the money ten years from now, or even twenty years or more, its real-world value and purchasing power will be much less than $5 million, and the regular contributions to a retirement account today might end up being worth more.

In the end, never count your chickens until they hatch. If you can afford to contribute to your retirement accounts, you should always do that. And when an inheritance actually comes your way, it will be a nice bonus to your stable financial future, instead of forming the backbone of your retirement hopes.