Many parents are reconsidering retirement timelines to boost wealth for their children’s inheritance, with projections showing a 30% rise in delayed retirements among middle-income households. This shift is driven by rising living costs and expectations around intergenerational wealth transfer.
- 41% of adults aged 50–65 are adjusting retirement plans to increase inheritance size
- Expected average inheritance per child: $485,000
- 22% increase in expected inheritance value since 2015
- 37% of respondents would delay retirement by 5+ years for inheritance goals
- 30% rise in estate planning inquiries over the past two years
- Middle-income households ($75k–$150k) show the highest shift in retirement behavior
A growing number of working-age parents are extending their careers beyond traditional retirement ages, not for personal income needs, but to increase the size of inheritable assets. Data from national household surveys indicate that 41% of individuals aged 50–65 in the U.S. report adjusting their retirement plans specifically to leave a larger inheritance for their children. This trend is most pronounced among households with annual incomes between $75,000 and $150,000. The decision is influenced by increasing financial pressures on younger generations, including rising housing costs and student debt. On average, parents expect to pass on approximately $485,000 in assets per child, a 22% increase from 2015 levels. This expectation is driving a shift toward extended employment, with 37% of respondents stating they would delay retirement by five or more years to meet this goal. Market implications are subtle but notable. The prolonged labor force participation of middle-aged workers may contribute to sustained demand for high-income positions and increase strain on retirement savings vehicles like IRAs and 401(k)s. Financial advisors report a 30% uptick in inquiries related to estate planning and legacy-focused investment strategies over the past two years. Individuals making this choice face trade-offs: reduced leisure time, potential health impacts, and missed opportunities for early retirement benefits. However, many view the long-term financial security of their children as a strong motivator, particularly as average inheritance values continue to rise amid low interest rate environments and asset appreciation.