The Silent Generation: Preserving Wealth and Ensuring Security
The Silent Generation, born between 1928 and 1945, has significantly influenced American society through its political leadership, contributions to the Civil Rights Movement, and shaping cultural landscapes in music, literature, and television. They were key players in the post-World War II economic boom; strong work ethics and traditional values significantly expanded the American middle class, raised wages, increased homeownership, and widespread access to higher education. Their parenting and mentorship of later generations, notably the Baby Boomers, also contributed to the social and cultural transformations of the 20th century.
Whereas in the mid-20th century, roughly 60-65% of American households were middle class, marking the peak of the middle class as a dominant force in American society. In 2024, approximately 50% to 51% of American households are middle class, continuing a trend of gradual decline from previous decades. The growing income inequality over the years has hit our oldest people the hardest. As the Silent Generation navigates retirement and legacy planning, steady and stable income, healthcare costs, and inflation are the top priorities. Many are on fixed incomes from Social Security, pensions, or savings, making them vulnerable to rising costs, particularly in healthcare. Longevity risk, or outliving their savings, is a significant worry, especially as they face potential long-term care needs. Some may still support adult children or grandchildren, further straining their financial resources.
For a small percentage of those over age 75 with assets over $10M, it is worthwhile to entertain gifting as Tax Cuts and Jobs Act of 2017 sunsets on December 31, 2025. Working with an estate planner with relevant experience and a compatible demeanor for wills, trusts, and powers of attorney is essential. Discussing plans with family members can prevent misunderstandings and ensure wishes come true.
How we can help
If you remember how your parents managed to provide food and shelter during the Great Depression or how we mobilized for World War II after the bombing of Pearl Harbor, you have life stories we can't wait to learn. In return, we would love to help you manage and optimize your retirement savings to ensure you live pleasantly, dignified, and with funds lasting your lifetime. We can help navigate healthcare costs with Medicare plan reviews and advise on long-term care planning. We can suggest tax-efficient withdrawal strategies and explore income-generating investments that align with your risk tolerance. We can play a critical role in estate planning and wealth preservation and help you leave a lasting legacy for your future generations