Retirement and estate planning are very different now compared to past generations. Today, people live longer. The age of retirement has increased and many of us work far beyond the age of 65. In the nineties, the average age of retirement was 57 years old. Today, that number has jumped to 62. Therefore, if you do not have a solid financial retirement plan in place, you may have to continue working—at least part-time—much longer than originally anticipated.
When you do retire, chances are you will live longer than your ancestors. The average life expectancy for a man is 84 years old. Women live even longer and have an average life expectancy of 86 years. Hence, you will need enough money to live for an additional 25 to 30 years post retirement.
In the past, living expenses would actually decrease by about 20 percent when people retired. But today, healthcare costs have caused budgets of retirees to increase dramatically. A serious illness can quickly wipe out a savings account that was supposed to take care of retirement living expenses.
Also, there is no guarantee as to the kind of shape Social Security and Medicare benefits will be in by the time you are ready to retire. This is another reason why it is essential to sit down with a knowledgeable estate planning attorney to ensure that your plans are in place post death, and that your assets are in order and will provide for a secure retirement. This may also include setting up different trusts and advance directives.
It is never too early to begin your estate planning. Our experienced DuPage County estate planning lawyers at Stock, Carlson, Flynn & McGrath, LLC offer solutions to protect your rights and assets and will help you plan for a successful retirement. We can assist clients in Downers Grove, Hinsdale, Lombard, Naperville, and throughout DuPage County. Please contact our office at 630-665-2500 to schedule a consultation