The importance of early retirement planning

Most people would think about retirement as they approach the last years of their lives. They begin to save and possibly draft wills and estate plans to ensure a comfortable retirement and hope to leave a good legacy for their loved ones. In this day and age when an increasing number of seniors are living in nursing homes, there is a lot to consider. Most important is the significant cost of living in nursing homes today.

A 2011 survey shows that about $239 is the average cost per day for a private nursing facility. That average cost is projected to increase by 4-5% each year, which is a significant cost in itself today and would be a daunting expense for people planning their retirement for the next 20-30 years. The average annual cost is estimated to be around $75,000. Contrary to what most people believe, health insurance will not pay for nursing home living expenses, leaving only the option of dedicating a portion of your savings to retirement as early as possible in adult life. . Since taxes do not make retirement and estate planning easy, people are encouraged to take action and prepare for retirement at an early age.

Experts recommend taking advantage of an employer-sponsored 401(k) plan. Even small monthly contributions can add up to a significant amount over the years. An allowance or contribution of 10% of one’s salary to a retirement fund could also help the elderly secure a better and more comfortable life in later years. Along the way, seniors can increase that allowance and save more as they approach their retirement years.

Many seniors save money and splurge on luxury cruises and vacation packages. As satisfying and rewarding as this can be, the amount spent on luxury can pretty much go into retirement funds. The financial health of seniors is at risk with more spending on entertainment and fun instead of practical comfort and peace of mind. When finances and wealth are at risk, it’s good to get legal advice on how to plan for retirement. Investments must be insured and the huge taxes involved in them can be avoided through legal assistance and planning. A good retirement planning lawyer can help you develop long-term goals that will secure your finances and wealth, and achieve what you envision as your ideal scenario for the future.