An elder law attorney at Frank & Kraft can provide you with help understanding the rules for investing in tax-advantaged retirement account, such as Individual Retirement Arrangements (IRAs). You should try to invest in IRAs if you are eligible so you can have money saved for a secure retirement. We can provide advice on what types of IRA accounts you should use and can assist you with setting retirement planning goals. We can also help you to take steps to protect your growing retirement nest egg.
Planning for retirement is one of the single most important things that you can do to make your future more secure, and our legal team will be here to provide the help and support you need. If you are ready to get personalized retirement planning advice, give us a call today to talk with an experienced elder law attorney. If you aren’t sure yet if you need to take proactive steps to save for retirement, read on to find out why investing in tax-advantaged accounts to save for retirement is so essential.
You Can’t Live on Social Security Alone
One of the biggest reasons why it is so important to make sure you have retirement savings is that Social Security alone is not really enough for most people to live on. According to the Social Security Administration, the average benefit for seniors in 2018 was $1,404. If you get the average benefit, this will give you an income only slightly above the federal poverty level. This is going to mean you face serious financial struggles, especially if you have significant expenses such as healthcare costs.
Unfortunately, it may be even harder to live on Social Security than it initially appears. In order to get your full Social Security benefit, you need to wait to claim benefits until full retirement age (FRA). Depending when you were born, full retirement age for most people is now 66 or 67. Yet, many people are forced to leave the workforce when they’re younger because of health issues or because they cannot find work due to lingering age discrimination — even though such discrimination is unlawful.
If you are forced to leave the workforce and claim Social Security before FRA, benefits could be reduced by as much as 30% depending upon just how early you retire. A benefit that was already too low would become even lower and you’d likely face really serious struggles to support yourself if trying to live off Social Security without retirement savings.
You May Incur Substantial Healthcare Cost as a Senior
Healthcare costs are another big issue that you need to think of as you are getting older and making financial plans for retirement. Employee Benefit Research Institute estimates a senior couple in the 90th percentile for prescription drugs would need to have savings of $370,000 just to have a 90 percent chance of covering healthcare costs. This big sum of money is just for care only, not for other costs during retirement. And, the math was done with the assumption that senior would have Medigap to help cover the bills.
Bottom line: you need to have a lot of savings to help you cover healthcare costs if you experience a major health issue when you get older. Frank & Kraft can help you to make sure you are saving enough money and can also provide assistance with exploring other options such as getting Medicaid to pay for some of the costs of care not covered by medicare.
Getting Help from an Elder Law Attorney
An elder law attorney at Frank & Kraft will assist you with all aspects of the retirement planning process. We can help you to identify and set goals for retirement and to decide which types of tax-advantaged accounts are best for you. We can also work with you to understand the rules for making tax-free investments for retirement and can help you to explore your options for protecting your retirement nest egg.
To find out more about the ways in which our firm can help you, join us for a free seminar. You can also give us a call at 317-684-1100 or contact us online to get personalized one-on-one advice about your retirement plan. Call today because your retirement is too important to just leave to chance.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.