Experts have traditionally tried to evaluate retirement preparedness by gathering information about the amount of money that people have saved before reaching the typical retirement age. Some experts from the National Bureau of Economic Research recently took a different approach. They felt as though a better barometer would be to look at how much money people had left when they passed away.
The findings were sobering to say the least. Some 46% of Americans die with $10,000 or less in their possession. Most of these people had been relying very heavily on Social Security and other government programs such as Medicaid.
There are a number of contributing factors and without question one of them is a simple lack of preparation. If you want to be able to retire someday you must recognize the financial realities and plan ahead proactively, and the sooner you start the better.
Aside from a lack of planning the high costs associated with long-term care are part of the equation as well. Many people don’t realize just how likely it is that you will need this type of care eventually. Over half of seniors will need living assistance and a stay in a nursing home or an assisted living community is extremely expensive.
Medicare will not pay for these costs. As a result many seniors wind up watching their savings being consumed by these costs until their resources are all but gone and they qualify for Medicaid, a program that will pay for long-term care.
Does aging present economic challenges? Absolutely, but challenges can be overcome through intelligent action. If you want to prepare for a comfortable retirement, right now would be a good time to pick up the phone to arrange for a consultation with a seasoned and savvy Hartford CT financial planning lawyer.