Older Americans are getting more inheritances, using it for retirement - Business Insider

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The average American getting an inheritance is 51 years old

, researchers found that as of 2016 the average age of Americans receiving an inheritance is 51 — a 10-year increase from 1989. What's more, over 25% of inheritances are going to people over the age of 61.

The researchers concluded that these late in life windfalls are often a boon to the recipient's financial security at a crucial life stage:"Inheritances used to go more toward mid-career, mid-life expenses like kids, and now they're likely going more toward concerns of people in their 50s, which is saving for retirement," Lincoln Plews, a research analyst and coauthor of the paper, told Business Insider.About 20% of Americans receive an inheritance, according to the paper.

"Taken together with the relatively modest financial profile of a typical inheritance recipient outlined above, this indicates that inheritances represent much more than a new Ferrari or better beach house for the young progeny of the ultra-wealthy ," the paper states. "Instead, inheritances seem to be essential pieces of the retirement security puzzle, bolstering the assets of middle-of-the-road older households just before they retire.

In the meantime, the inheritances themselves have grown in size in part because of solid market returns over the last 30 years, Kelly said. Plus, Americans over age 60 are cutting their spending by an average of 2.

 

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