When it comes to retirement, many Americans expect that they will never be able to afford to retire fully. In fact, a new Wells Fargo study cited in USA today found that 37% of people expect to work until they are too sick or die, despite the world economy returning to health.
The annual Wells Fargo Middle Class Retirement study surveyed 1,000 middle-class Americans between the ages of 25 and 75. Findings revealed that the top concern among respondents was being able to pay day-to-day bills now, while saving money for retirement. This is in part because, despite the recovering economy, many people are still affected by the changes wrought by the Great Recession that are still lingering, including lower-than-expected earnings and investment returns, depleted savings, and loss of jobs and income. Therefore, if retirement is in their future, people in their 40s and younger need to take some time to start planning or to revisit their plan, and Baby Boomers need to think with more urgency.
To help you plan, below are some recommendations:
- Set a goal and start planning: Figure how much you will need for retirement. You can get a ballpark estimate at choosetosave.org, run by the non-profit Employee Benefit Research Institute. If you are not on track, figure out what you have to do to get there.
- Figure out what retirement means to you: Ask yourself questions like, “What will I do? Where will I live? Will I travel early? Do I want a second home?” It’s critical to know these details when it comes to discipline needed to act out the plan to help achieve it.
- Manage your debt: Anybody who is seriously thinking about preparing for retirement must reduce their debt. This includes credit cards, mortgage debt, and even student loan debt, because so many older Americans have gone back to school and financed their education or co-signed for their adult children.
- Hire a financial advisor. Make sure you have the right mix of stocks, bonds and other savings. If you live in Northern Virginia, be sure to check out the Trusted Referrals listed on Farr Law Firm, P.C. website.
- Be prepared for predictable but unfortunate life events. Did you know that in any given year, you are more likely to become incapacitated than you are to die? Many people will get life insurance, but fail to plan for long-term care. Meet with a Certified Elder Law Attorney, such as Evan H. Farr, to protect your family’s hard earned money and assets from the catastrophic costs of long-term care. Read our recent article, Why You Shouldn’t Put Off Long-Term Care Planning, for more details.
As mentioned in the article above, long-term care planning should be an important part of your retirement planning. If you have a loved one who is nearing the need for long-term care or already receiving long-term care or if you have not done Long-Term Care Planning, Estate Planning or Incapacity Planning (or had your Planning documents reviewed in the past several years), please call The Fairfax and Fredericksburg Long-Term Care Planning Law Firm of Evan H. Farr, P.C. at 703-691-1888 to make an appointment for a consultation.
Fredericksburg Elder Law
Estate Planning
Fairfax Elder Law
Long-Term Care
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About Evan H Farr, CELA, CAP
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