A Connecticut retirement lawyer can help you to make sure that you are on track to retire when you are ready to stop working. Unfortunately, many people do not save nearly as much money as they should. It becomes stressful and a lot more difficult to try to play catchup when you are older, as opposed to beginning investing for retirement as early as possible. It is also very difficult for seniors who do not have enough to retire and who have to keep working after they want to stop or who struggle financially in their old age.
Nirenstein, Horowitz & Associates can help you to make sure that you are on track for retirement so you will not have to worry about struggling with money as you get older. The sooner you get legal help from a Connecticut retirement lawyer, the easier it will be for you to save enough to be secure in your old age. Give us a call at 860-548-1000 to find out more about the retirement planning process and about how much you need to retire comfortably.
Why it is so Important to Save for Retirement
According to Investopedia, the average amount that a person between the ages of 55 and 64 has saved in the United States is $104,000. For those who are in this age group, retirement is looming on the horizon as many people want to retire during these years.
Unfortunately, this means that you will likely not have enough money to live comfortably as a senior since retirement savings of $104,000 would only provide you with around $310 per month in income. Since Motley Fool reports that the average payment a person receives from Social Security is just $1,341, you cannot count on Social Security to provide you with enough money either.
Many people get behind in their savings very early on. Investopedia reports that most people have around $45,000 saved by the time they are in their 30s and have around $63,000 on average saved by the time they reach their 40’s. This could seem like a lot, but it is described as being “dangerously behind,” as most financial experts recommend that you have around three times your annual salary saved by the time you are in your 40’s. This means if you are in your 40s and you make around $55,000 per year, you should have approximately $165,000 saved.
How Can You Tell if You are On Track?
It can be hard to tell if you are on track for retirement savings or not, because everyone has different incomes and different retirement goals. CNBC reports that many financial advisors suggest that retirees have around eight times their ending salary saved by the time of their retirement.
Other financial advisors focus on how much of your income you will need to replace by retirement age. For example, it is commonly stated that retirees will need to generate income equal to 80 percent of their ending salary through their retirement investments. This would mean if you finished working and were making a salary of $100,000, you would need to be able to generate $80,000 in income annually, plus increases for inflation.
While each of these different approaches provides you with a good finishing benchmark, it can be hard to determine how much to save along the way or whether you are on track. The best practice is to start saving as early as you possibly can so you can take advantage of tax-deferred accounts which have annual contribution limits, and so you can make compound interest work for you. If you are saving around 15 to 20 percent of your annual income for retirement, you are probably on track to have financial security in your future.
A Connecticut retirement lawyer can provide you with a more personalized evaluation based on your life goals, the amount you have saved, and your current financial situation.
Getting Help from A Connecticut Retirement Lawyer
Nirenstein, Horowitz & Associates provides help to many people who want to get on the path to security during retirement with smart investing. Our legal team has the knowledge and skill that you need to take advantage of IRAs and other tax-advantaged accounts, as well as to set up your retirement plan and protect your assets.
Give us a call at 860-548-1000 or contact us online to speak with a member of our legal team and to learn more about how a Connecticut retirement lawyer can help you.