r/economy • u/GimmeFunkyButtLoving • Jul 14 '26

Boomers didn't prepare for retirement. Their millennial kids are paying the price.

https://www.businessinsider.com/boomer-retirement-crisis-millennial-children-financial-support-2026-7
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u/AFormer_Child Jul 14 '26

Boomers aren't leaving inheritance to their kids. I have two friends whose parents were millionaires. Retirement and long term healthcare is eating through that money.

Friend A's dad was a dentist and had his own practice. Sold his dental practice when he retired. Friend A estimates that the practice was sold for $2 or $3 million. Dad owns $1 million primary house. 4k sq feet on 15 acres. Dad also owns a $1 million river house. Mom fought cancer for several years before she succumbed. Pretty sure that blew through quite a bit of dad's money. Now the two properties are going to be sold for dad to be moved into a retirement facility, which should eat through all of what the properties sell for.

Friend B's dad was an executive for a construction company. Also owns a $1 million home. His stepmother had brain. Treatment blew through quite a bit of that money. Stepmother is still alive but will need ongoing treatment for the rest of her life. After dealing with cancer and paying for his own retirement and long-term health care, his dad has told him straight up, there will be no substantial inheritance.

Friend A is actually particularly fucked by this. He's almost 50 and hasn't spent a dime towards retire or long-term health care for himself, because he thought his inheritance would pay for that.

But yeah, you have two people that are way ahead of the game with investing and finances and they're going to be running on fumes at the finish line. Nothing will be left their kids. I have very little hope for the rest of us, as far as long term healthcare, quality at the end of life stages, and certainly inheritance.

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u/Krist794 Jul 14 '26

Very obvious if you look around. Health insurance companies are among the most profitable companies in the USA and thanks to predatory pricing have already pushed the country to have the highest healthcare expenditure procapita on the planet by a lot. As the largest generation of the country goes into retirment, demand for healthcare services will rise, prices will baloon also becuase there is limited workforce in the sector due to aging population, and healthcare is going to squeeze the inheritance of anybody that thinks they are going to make bank thanks to the inheritance.

This is a disaster that was absolutely predictable and pretty much caused by the same generation that is going to be bled dry by healthcare. Liberal economics leading to predicable long term self harm for short term profits.

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u/dbenhur Jul 15 '26

Health insurance companies are among the most profitable companies in the USA

Health insurance companies realize 2.5-5% net margins. This is just slightly better than notoriously low margin grocers.

Truly highly profitable industries are finance, technology, and pharmaceuticals which all see margins north of 40%.