Retirement planning has become more important than ever for people throughout Connecticut. Making advanced plans for retirement is important because too many people no longer have defined pension benefits available to them through their employers. Instead, they are dependent upon saving enough money through their own contributions to 401(K) accounts and through other types of tax-advantaged retirement accounts.
You need to make sure you begin saving as early as possible for retirement, as you want to make certain you do not face financial struggles. Many seniors have money concerns in today’s world because medication and healthcare is so expensive and because Social Security cost of living increases are not always available each year for seniors.
There have also been discussions in recent years about making changes to Social Security which could make life even more financially difficult for seniors. Amidst this economic and political environment, retirement planning is unquestionably more important than it has ever been.
The good news is, Nirenstein, Horowitz & Associates can provide you with the help you need to be financially secure during retirement. Our experienced retirement planning professionals have helped many people n Hartford and surrounding areas throughout Connecticut to take advantage of tax breaks and to make smart savings choices so they do not have to worry about their financial security during retirement. To find out more about the ways in which we can help you to ensure you have enough cash to enjoy your golden years, give us a call at 860-548-1000 today.
Why is Retirement Planning so Important for Seniors Today?
Retirement planning is vital for seniors, because too few seniors have enough savings to retire securely. According to Investopedia, Americans between the ages of 55 and 64 have only accrued an average of $104,000 in savings for their retirement. While $104,000 could seem like a lot of money to people who are just getting started with their savings, this is not very much for people who should be getting ready to retire in a few years.
When a person retires and has to live off their savings, they do not want to take out the balance of the money in their investment accounts. Instead, the idea is to live off profits and interest in the accounts or to invest retirement savings in something like an annuity, which makes regular monthly payments so you have income coming in that you can count on.
The problem is, if you bought an annuity at retirement age with only $104,000, you would only receive $310 a month. This is not going to be nearly enough to pay for housing, food, Medicare premiums, and all of the other basic life necessities which seniors need.
Social Security May Not Be Enough
Many seniors put off retirement planning or think it is unnecessary because they know they will receive Social Security benefits. Unfortunately, you cannot count on Social Security to provide you with a good living during your golden years.
Motley Fool reports the average American receives $1,295 from Social Security. As the Motley Fool indicates “many families have trouble making ends meet on the Social Security payments they receive.”
The future of Social Security also remains uncertain, as changes to the program have been discussed in recent years which would have resulted in seniors receiving less in benefits. As the Huffington Post reported, President Barack Obama once proposed making Social Security benefit cuts. Although cuts to benefits seem to be off the table for Democrats now due to political activism, it is uncertain what will happen in the future, as there have been various efforts made over time to privatize Social Security or to raise the retirement age.
The bottom line: you cannot count on anyone but yourself and your own savings, and most people simply do not have enough set aside. If you are proactive and take retirement planning seriously, you can ensure you are not one of the many seniors who face financial struggles at a time when you should be enjoying your life.
How a Hartford Retirement Planning Lawyer Can Help You
Nirenstein, Horowitz & Associates understands what is involved with retirement planning and can provide you with the assistance you need. The sooner you make your plans and begin your retirement savings, the easier it will be for you to achieve financial security so you can enjoy retirement instead of working longer than you want to or spending your life worrying about money.
To find out more about how our Connecticut retirement planning lawyers can assist you, give us a call at 860-548-1000 or contact us online to speak with a member of our legal team.