While many individuals may think they will get a sizable amount of money from an elder family member after their passing, this may not be the case for most. Even if a person can improve their financial strategy by receiving such a generous offer, it may not be something to bank their future on.
More than 25 percent of adults noted that they think they will receive some type of inheritance during their life, a report from Interest.com explained. Of that group, close to one-quarter felt they would earn a sizable income, with figures ranging between $10,000 and $50,000. While that was the highest percentage in the analysis, many others expected to earn more money. More than one-fifth felt they would receive between $100,000 and $500,000, and approximately 15 percent explained they could see between $50,000 and $100,000.
However, those who receive the money might want to improve their financial discipline, and get their budgeting back on track. More than 40 percent of those who are banking on receiving money through this type of gift want to put it toward their retirement, the report noted. Close to 20 percent explained they will try and pay their debts with their inheritance.
“Even a relatively small inheritance can make up for many years of saving too little,” said Mike Sante, managing editor of Interest.com. “An inheritance could be the ultimate financial ‘get out of jail free’ card for many families.”
Salary levels should increase next year
While some individuals may be planning on taking care of their futures through an inheritance, they may have more luck working on their own finances.
The average salary for Americans working full-time jobs and being paid a salary could earn an increase of 3 percent next year, according to a report from Aon Hewitt. This would be higher than this year’s gain of 2.9 percent. However, it still has a bit to go in order to reach the highest point in recent memory. That occurred in 2008, when the average jump was 3.7 percent.
Those who work hard and get results at their job may see the most significant pay gains during this year. The report added that this group should earn close to 4.7 percent more, while those who are underperforming may have increases of less than 1 percent.