Why you shouldn t stake your entire retirement plan on getting an inheritance

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Financial Intelligence • Markets • World News • Independent Analysis
Published: 2026-09-08 • Permanent link

Rising inheritance expectations are leading to a concerning trend in retirement planning. A recent report by the Employee Benefit Research Institute found that nearly 70% of Americans expect to inherit a significant amount of money from a family member or friend. However, this expectation is not necessarily tied to actual inheritance, as many people are staking their entire retirement plan on receiving an inheritance. This trend is causing financial advisers to sound the alarm, warning that relying on inheritance can be a recipe for disaster.

Consequently, investors are being forced to reevaluate their retirement strategies. With the average retirement account balance sitting at around $100,000, relying on an inheritance to make up the difference can be a significant risk. In fact, a recent survey found that nearly 40% of retirees who relied on inheritance for their retirement income ended up running out of money within five years. This highlights the need for a more diversified and sustainable approach to retirement planning.

Historically, inheritances have played a smaller role in retirement planning. Since the 1980s, the median inheritance for Americans has increased by just 10%, while the median retirement account balance has grown by over 500%. This disparity is a stark reminder that relying on inheritance is not a reliable way to fund retirement. Instead, investors need to focus on building a diversified portfolio of assets that can generate steady income and support their long-term financial goals.

Looking ahead, it's clear that the reliance on inheritance is going to be a major issue for retirement planning in the years to come. As the number of retirees continues to grow, so too will the need for sustainable and diversified retirement income streams. In response, financial advisers are urging investors to adopt a more conservative approach, focusing on building a solid foundation of retirement savings and exploring alternative sources of income, such as part-time work or rental properties.