Key Facts Seniors Need to Know About Retirement
Elder law attorneys can provide help to seniors in making plans for retirement. Retirement is not just something that seniors need to think about once they reach their 60’s. If you want to have financial security during retirement, you need to take part in retirement planning throughout the course of your life to ensure you have the money that you need to be financially secure.
Zimmer Law Firm can offer the help and support that you need to get ready to retire on your terms with enough money to be comfortable and to live without worry. There are a lot of important facts that you need to know about retirement and you can talk with an experienced attorney to find out about many issues that you might not think about as you make plans for your golden years.
Key Facts to Know About Retirement
There’s a lot of important information to consider when planning for retirement and when determining if you are ready to retire or not. Some of the key facts to know about retirement include the following:
- Most private sector employees today do not have defined-benefit pension plans. While employers used to provide guaranteed income to many retirees, this is not common any longer. Instead, employees either have no access to retirement benefits at work or have access only to defined contribution plans such as 401(k)s. Workers are more responsible than ever for providing for their own retirement and Zimmer Law Firm can provide help in making use of tax-advantaged accounts such as IRAs to help you save.
- Seniors will need as much as $370,000 just to cover the costs of healthcare: Research from the Employee Benefits Research Institute found that a senior couple who have prescription drug needs in the 90th percentile will need to have as much as $370,000 to cover the costs of medical care during retirement. This is assuming seniors are covered by Medicare and by a Medigap policy. The $370,000 in savings would give the senior couple a 90 percent chance of being able to afford their care if they were in the 90th percentile for prescription drug use.
- Living on Social Security alone is difficult. The average Social Security benefits for 2018 total just $1,404 per month, which would provide an annual income of only $16,848. Because this is a relatively low income, it is difficult for seniors to live on Social Security benefits unless they also have other sources of income. It is important to invest throughout your career so you can save enough to provide you with income during retirement.
- Social Security benefits are affected by the age when you claim benefits. If you claim retirement benefits before full retirement age, which is 67 if you were born after 1960, you will have your benefits reduced. The reduction is equal to 5/9 of 1% per month for each month early you claim, if you claim 36 months or less before full retirement. If you claim benefits before 36 months, your benefits are reduced by an additional 5/12 of 1%. Many people end up involuntarily retiring earlier than they want to, which can result in a reduction in Social Security benefits if you must claim benefits early because you’re forced to leave your job and cannot find other work. Having savings would allow you to delay claiming Social Security benefits if you wish to do so, so you can ensure that you are getting the maximum benefit from the program.
Zimmer Law Firm can assist younger workers in making plans for retirement and can help seniors to make sure they understand legal requirements associated with IRAs and 401(k) accounts. For example, seniors may need to make required minimum distributions (RMDs) in order to avoid getting hit with tax penalties.
Getting Help from Elder Law Attorneys
While many people think the primary job of elder law attorneys is to help clients to create a will or to help clients make a legacy plan, this is just one small part of what elder law attorneys do. An experienced attorney can also provide help in planning for a long retirement and in protecting assets.
To find out more about the services Zimmer Law Firm provides to seniors, join us for a free seminar. You can also give us a call at 513-721-1513 to get personalized assistance from elder law attorneys who can help you.