Elder law attorneys help you to address many important issues that matter as you get older. Elder law attorneys don’t just help with things like making a last will and testament or creating a plan in case you become sick or incapacitated. We also help you to plan and prepare for a secure retirement.
People are living longer than ever, and many people have too little money saved for retirement and so are uncertain about what income will be available to them. You want to understand your options for generating retirement income as early as possible in your career so you can make a plan to have enough money as a senior. If you are nearing retirement, it is also important to understand the different sources of income available to you and to make sure you have the money you need.
Frank & Kraft provides assistance with the retirement planning process throughout your lifetime, no matter what stage in your career you are in. We can help you to make a plan to save for retirement during your working years and we can assist you in making a plan to support yourself once you have reached the end of your career and retirement is on the horizon. To find out more about how our elder law attorneys can help with issues related to financial planning for retirement, give us a call today.
What Seniors Need to Know About Income for Retirement
Many seniors believe that Social Security can and will make up a substantial portion of their income. However, while the Social Security Administration indicates that around 71 percent of single people and half of married people do rely on Social Security for 50 percent of their income or more, living on Social Security as your only or primary source of income can be a challenge. In 2018, average benefits for Social Security totaled just $1,404 per month for seniors, which is an income of just $16,848 per year. This income is too low for almost anyone to live comfortably off of– especially considering that seniors typically experience significantly higher medical care costs than their younger counterparts.
If you do not have savings, you may have no choice but to live off Social Security even if this puts you near the poverty level Unfortunately, Social Security benefits can be reduced if you decide to retire before full retirement age (FRA). FRA is 67 for those born after 1960, but many people need to retire well before they turn 67 because they physically cannot work any more or because they cannot find jobs. Benefits are reduced by 5/9 of one percent for each month before FRA that you retire, and are reduced by an additional 5/12 of one percent if you retire more than 36-months early. If you’re forced to take benefits before you have reached FRA, you’ll be coping with far lower benefits throughout the entirety of your retirement.
You don’t want to struggle financially as a senior if you don’t have to, so you should try to invest enough for retirement during the course of your life time. There are tax-advantaged accounts that can help you to save for retirement. If you have access to a 401(k) at work, you may be able to invest money for your retirement in your 401(k) and your employer may even match some of the funds.
However, not everyone has access to a 401(k) and, in some cases, the investments available through a 401(k) are limited and costly. There may be another alternative: an Individual Retirement Arrangement or IRAs. IRAs can be a great choice for tax-advantaged retirement saving, especially if you don’t have a 401(k) at work or if you’ve already invested up to your employer match and you want to put your money somewhere where you have more choices of investments.
Elder law attorneys can help you to understand if you are eligible to contribute to an IRA and can assist you with other issues related to planning for retirement.
Getting Help from Elder Law Attorneys
Frank & Kraft has provided assistance to clients of all ages in making a retirement planning, If you want to ensure you fully understand your options for generating retirement income and if you want advice on making sure you do everything possible to save enough money for a secure retirement, our elder law attorneys can help you make an implement a plan.
To find out more about how we can assist you, join us for a free seminar. You can also give us a call at 317-684-1100 or contact us online at any time for personalized one-on-one advice with all of your retirement planning needs.
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.