There is a certain percentage of population that goes through life under the impression that “things will just take care of themselves.” This may or may not be the case in certain instances, but when it comes to retirement planning thinking like this can get you into a great deal of difficulty. The fact is that a lot of people who are nearing retirement age and many who are already there are totally unprepared.
A recent Harris poll indicates that 25% of baby boomers have no savings whatsoever for their retirement years. 44% of baby boomers who responded to a recent AP-LifeGoesStrong.com stated that they don’t feel confident that they’ll have the money that they need for their retirement years. This is rather profound considering the fact that 10,000 new applicants for Social Security are lining up at the offices each and every day, and this volume of applicants is expected to continue for the next two decades. That is a lot of people who will be entering their retirement years with no savings to fall back on.
If you think Social Security will take care of everything, think again: the average monthly Social Security payout is $1,072 and there haven’t been any increases in the last two years. Plus, we’ve all heard the talk coming out of Washington about potential cuts to Social Security, Medicare, and Medicaid, so thinking that there will be any significant increases in what Social Security will be able to do for you is probably not a good idea.
The only way that most people are going to be able to accumulate the financial resources that they need to enjoy a fun, comfortable retirement is by making advance preparations early on. The best way to know exactly how to proceed would be to arrange for a consultation with an experienced estate planning attorney. He or she will listen as you explain your goals and map out a plan that makes your retirement vision a reality.
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.