Are You One of the Many Americans Not Financially Prepared for Retirement?

When it comes to your finances and your future, you’ve got to be the one who takes the reins and protects your nest egg. In addition to funding your retirement, those accounts might also become the payment source for long-term care health needs. You and your spouse should both be on the same page about saving for these possible issues.

A recent study of US adults between the ages of 50 and 64 revealed that plenty of Americans do not feel confident about being able to afford health care costs in retirement. Nearly 45% of the survey respondents had low confidence in their ability to afford appropriate health insurance coverage for their potential needs during retirement.

The average 65-year-old couple in 2020 will require nearly $300,000 in today’s terms during their retirement to cover health care expenses outside of long-term care. That number could also fluctuate dramatically based on location, income, health and Medicare eligibility.

The expenses for health care can increase considerably when you consider the possibilities with long term care, given that the national average median cost is $8,821 for a private room in a nursing facility.

Leveraging tools such as long-term care insurance policies and health savings accounts can help to empower retirement savers today with a better understanding of what’s required to protect their own future.

The support of an experienced NH elder law lawyer can help guide you through this process and ensure that you have considered all different aspects of appropriate planning.

Understanding the Importance of Income in Retirement

Looking ahead to retirement often means that you are looking forward to disconnecting from work. However, you’ll still need some form of income in your retirement years. Knowing where your money will come from every single month will give you a great opportunity to reduce the peace and friction for yourself which can lead some who have not planned properly to have to go back into the workplace for a part time job.

Since you are in effect creating your own paycheck in your retirement years, you need to think carefully about these important questions in the years prior to approaching retirement. A few different income streams is the ideal situation for a person approaching retirement. These income streams can include investment savings, pensions or social security or some combination of all three. You might be counting on a Roth IRA, rental income, or other income paying assets but it might be time to move to a more conservative portfolio structured to protect those interests as you enter retirement.

A pension plan is likely one that has already been structured and clearly explained to you in terms of payout as you get closer to your retirement years. You could be offered a lump sum payout at some point but you want to carefully weigh whether or not it’s in your best interests to take a monthly or annual payout instead. Finally, there are plenty of different filing strategies to consider when it comes to claiming social security benefits.

You’ll need to understand which ones are most beneficial for you based on your individual situation. Make sure that you have a financial professional who can guide you through the selection process. Need help with more questions around the elder law planning and estate planning? We’re here to help you see how these connect.


Unexpected retirement. Sign outside on sidewalk with the words "What's your plan for retirement?"

How to Deal with an Unexpected Retirement

Your retirement plan is likely entirely contingent on how long you intend or consider yourself able to work. Health crises or economic crises may be pushing more people toward an unexpected retirement or an early retirement than ever before. Even if you don’t believe that a retirement is immediately on your horizon, it can be well worth spending some time thinking about how you would adapt quickly if you needed to move into retirement.Unexpected retirement. Sign outside on sidewalk with the words "What's your plan for retirement?"

Retiring earlier than expected is not something new. In fact, a study recently completed by Allianz Life found that half of current retirees retired earlier than expected. Most of the people in that study, however, said that they retired for reasons outside of their control, such as the unexpected loss of a job or the development of healthcare issues that prevented them from being able to do the job.

The first thing to do when planning ahead for potentially early retirement is to fill in the gaps by examining health care needs first and then looking into other employment options.

A part time hourly or contract position could be a way to help bridge the gap if you were not financially ready to retire at the time that you had to leave the work force for one reason or another.

If you had to retire due to health issues, now is also the time to look more deeply into your elder law plan. Have you thought about protecting yourself or your spouse if your healthcare issues got worse? Do you know how you’d qualify for Medicaid if you needed it?

Schedule a time to speak with an elder law attorney if you’re coming up on retirement and are ready to answer the important questions around your elder law plan.