Working Until You Are 70 Is Not As Safe A Retirement Strategy As You Think
Although you might not know this from most of the advertising content you see out there, wishful thinking is not a sound retirement strategy. Therefore, if you are basing your plans for retirement on the money you have instead of the money you wish you had, you are off to a good start. Assume that you will never be able to contribute more to your retirement accounts than you are currently contributing, and that you will not get any more pay raises. Therefore, you should base your projections of retirement income on your retirement savings as they currently stand and on the Social Security income you will eventually draw. In this context, when you retire is a major factor in determining your retirement income. Some people choose to work until they are older than 65 so that they can spend more time contributing to their retirement accounts and so that they can delay drawing Social Security, ensuring that each Social Security check will be for a bigger amount. While this is a better strategy than assuming that you will win the lottery or inherit from a long-lost relative, it is not as airtight as you might think. To build a realistic estate plan driven mostly by your employment income and Social Security, contact an Orlando estate planning lawyer.
The Trouble With Working Until You Drop Is That You Might Drop Sooner Than You Expect
An increasing number of Americans reasonably believe that they will never be able to retire comfortably, but that does not mean that they will never retire. In fact, most of the people who once planned to work until they are 66 or older actually retire sooner than that. Greg Iacurci of CNBC Finance has even described this phenomenon in terms of a mathematical formula. He says that you should start your calculation at age 61, then decide how many additional years you want to work. For example, you might want to work an additional eight years, retiring at age 69. According to Iacurci’s formula, you should divide that number in half to get your realistic retirement age. Eight divided by two is four; you will probably work four additional years and retire at age 65. Therefore, you should base your retirement budget on the Social Security income you will get if you begin drawing Social Security at age 65.
Why do people retire earlier than they once planned? About a third of them find themselves in a better financial situation they expected, due to family inheritance or retirement bonuses. The others retire early either because of involuntary job loss or because health problems make it necessary for them to leave the workforce.
Contact Gierach and Gierach About Estate Planning Within Your Means
An estate planning lawyer can help you plan for the most comfortable possible retirement with the means you have, as well as a painless probate. Contact Gierach and Gierach, P.A. in Orlando, Florida to discuss your case.
Source:
cnbc.com/2023/10/31/why-working-longer-is-not-a-good-retirement-plan.html
