There are multiple contingencies to consider when you are making preparations for the latter stages of your life. Financing your retirement years is of course going to be one of your concerns, but you also have to consider the eventualities that go along with entering into your twilight years.
Your longevity is going to be one of the variables that is a significant factor. The population is rapidly aging, and senior citizens are making up a large percentage of the overall population.
To take this a step further, according to the 2010 figures compiled by the United States Census Bureau the fastest-growing segment of the population is the group that is 85 years of age and older.
If you are going to live for 20 years or more beyond the day that you retire you are going to have to accumulate a significant financial underpinning to be able to pay your expenses and enjoy your free time.
There is also the matter of long-term care to consider. Once you start receiving Medicare there is a 40% chance that you will some day be residing in a nursing home. However, Medicare will not pay for an extended stay in a nursing home so you may have to seek an alternative solution.
Writing a check may be an option, but you have to understand the fact that in 2012 the average cost for a year residing in a private room in a nursing home in the United States was around $90,500.
There is a good tool on the Social Security Administration website that you can use to find out your life expectancy based on your age at any given time. Click this link to access the tool: Online Life Expectancy Calculator
Another excellent source of information is our report on long-term care and how you may be able to prepare yourself to absorb these costs. To obtain access to the report click this link: Indianapolis Elder Law Report
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.