Planning for retirement is an important aspect of having a comprehensive estate and incapacitation plan in place for your later years. It is a task best done sooner rather than later in life. Some aspects to consider for retirement planning:
1. Retirement plans play an important role in estate planning.
Any unused funds in a retirement plan are left to a beneficiary that was named on a form that was completed when you began the account. Like other aspects of an estate plan, beneficiary forms should be reviewed on a regular basis to keep them up to date with life changes.
2. There is no ‘one size fits all’ retirement plan.
Each retirement plan has advantages and disadvantages and should be chosen to meet your specific needs. It is important to carefully evaluate your choices and seek the advice of a qualified professional rather than relying on the advice of a friend or family member.
3. Contribution amounts should be based on your family and personal situation.
Determining your contribution amount is a complex decision, and can have many variables, including:
- Your current age;
- The age you wish to retire;
- Your family’s assets;
- Your retirement goals;
- Current contribution limitations.
4. The nature of retirement planning is changing.
With life expectancies increasing and early retirements becoming the norm, it has become more likely to have a shorter working career and you will need to sustain yourself for more years in retirement than previous generations. No longer can you simply depend on a company pension plan to sustain you in later years, you should consider a more ‘multi-dimensional’ approach.
Retirement planning is but one aspect of planning for your later years, there are several others that an estate planning attorney can assist you with, including incapacitation planning, estate planning, disability planning and even planning for the costs of long term care.