Are your parents Baby Boomers? That’s someone born between 1946 and 1964. If so, here are a few things you should know about the Boomer generation:
First: Don’t expect a big inheritance. Unlike previous generations, Baby Boomers are much more likely to spend their money instead of saving it on everything from trips to medical expenses. And since they’re obsessed with looking and feeling young, they’re spending record amounts on everything from Botox to plastic surgery. And if there’s any money left to inherit, it’ll probably have strings attached, like a trust that limits how much you can withdraw every year, because Boomers don’t believe their children are capable of handling money wisely.
Another fact about Baby Boomer parents: They’re breaking divorce records. Statistics show that the divorce rate for people over 50 has doubled in the past 20 years. One reason: Empty nesters often discover they don’t have much in common when the kids aren’t around. A lot of Boomers are also on their second or third marriage, which are statistically more likely to end in divorce than first marriages.
One final fact about Baby Boomer parents: They’ll eventually be living with you. Nearly half of Boomers don’t have enough money saved to retire. And it’s often because they dipped into their retirement funds to send you to college. Plus senior living communities are expensive, like $40,000 a year or more. Living in your guest room is free. And Boomers are expected to live well into their 80s and 90s; much longer than previous generations. Sounds like it’s time to start cleaning out that extra bedroom.