Jul 2, 2017 By Gary Boatman for The 3 min read

Younger workers may be in for some financial surprises.

Sixty-eight percent of millennials expect to receive an inheritance from their parents. However, less than 40 percent of boomers plan to leave one to their children. There are a number of reasons for this besides an obvious lack of communications. Older generations usually planned to leave something for younger family members. The attitude is different for Boomers. They have always wanted everything and wanted it now. They also contributed to the high cost for postsecondary education and believe that their children can fend for themselves.

Many Boomers are not prepared for their own retirement. Many will not receive pensions and defined contribution plans such as 401(k)s, which require workers to defer money they could be receiving now to fund their retirement. Many just have not saved enough. Some boomers had to retire earlier than they expected because they lost their jobs in 2008. This may have forced them to start spending retirement dollars early to operate their households.

Some started Social Security early, so they will receive less than if they could have worked longer. Medical costs are much more expensive. This expense has brought longer lifetimes which take more money to fund. Also, being healthier, Boomers can have a more active and expensive retirement.

According to a study by Natixis, 44 percent of Boomers do not have a will, so many probably have not done any estate planning. Something that may surprise millennials is that 24 percent of Boomers are expecting financial help from their children. Millennials are way behind in their own financial planning, probably because of college debt. They are delaying marriage and needing much more time to save and buy a house.

Natixis found that younger generations do not have much faith that government retirement programs will be available when they reach retirement. The study also found that millennials are not factoring inflation into their retirement calculations. If we have 3 precent inflation, something that cost $100 today would be $181 when they reach retirement age. This could be a huge shock.

Society needs more financial education for all age ranges. Our economy makes us much more responsible for our own futures. We need to make better choices and save more money. We have to be careful of bubbles that have been created by long term artificially low interest rates and soaring student loan debt. Many things have changed in the economy and we must adjust our thinking to the new financial worlds.

Your Financial Future is written by certified financial planner Gary W. Boatman, MBA and CFP, who also wrote the book, “Your Financial Compass: Safe Passage Through The Turbulent Waters of Taxes, Income Planning and Market Volatility.” If there is an area that you would like to see discussed in the column, send your suggestions to gary@BoatmanWealthManagement.com.