Hartford elder law attorneys at Nirenstein, Horowitz & Associates can help you to work towards retirement throughout your lifetime so you are prepared and ready to leave the workforce when you get older.
Retiring is something that many people look forward to, but if you have too little money saved, you may not be able to retire when you want to. Working with an experienced attorney during the course of your lifetime can help you to ensure you take advantage of accounts that provide generous tax breaks so you can build up the nest egg you need. Nirenstein, Horowitz & Associates can offer you advice on the laws related to investing in IRAs and other legal issues that could affect when you are able to retire and how much you can save for retirement.
How Elder Law Attorneys Can Help You Decide When to Retire
There are many things that you need to consider when you make a decision on whether you are ready to retire or what age you will retire and leave the workforce for good. Some of the key considerations to think about include the following:
- Do you have enough retirement savings to last? This is one of the biggest issues that many people face. The average Social Security benefit is typically too little to live on alone (the average monthly benefit was just $1,404 for 2018) and you’ll need savings to supplement your Social Security. You do not want your savings to run out too quickly, so most financial experts recommend that you withdraw no more than 4% of your retirement account balance during the first year you’ve retired. Then, adjust withdrawals upwards for inflation each year. Because you need to make sure your savings lasts since you can’t count on Social Security to provide all of your income, you should work with an attorney to understand whether you can make IRA contributions and to set goals for contributing to this tax-advantaged retirement account.
- Do you have a plan to cover healthcare costs? Research from Employee Benefit Research Institute revealed that a senior couple with prescription drug costs in the 90th percentile for prescription drug use would need to have around $370,000 saved to cover care costs. Many people do not have enough money to pay for healthcare in retirement. If you may not be able to afford out-of-pocket care expenses, especially for something expensive such as nursing home care, you can work with Nirenstein, Horowitz & Associates to make a Medicaid plan so you can qualify for Medicaid coverage when you need costly care.
- How will retiring affect your Social Security benefits? The Social Security Administration sets a full retirement age (FRA) based on your birth year. If you retire before your full retirement age, benefits are reduced. The amount of the reduction depends upon whether you retired more than 36 months early. On the other hand, if you wait until after your full retirement age, you earn delayed retirement credits, which means that your benefit amount goes up. Benefits keep on increasing until you are 70 at which point your benefit will not climb higher any more even if you wait longer to retire and start claiming Social Security.
Nirenstein, Horowitz & Associates can help you to understand the laws related to making retirement investments in tax-advantaged accounts, qualifying for Medicaid, and protecting the assets that you worked hard to acquire.
Getting Help from Hartford Elder Law Attorneys
Hartford elder law attorneys at Nirenstein, Horowitz & Associates will provide personalized one-on-one advice as you make your retirement plan. We help you to understand the rules for investing in IRAs, to set retirement savings goals, to make a plan to cover healthcare costs, and to ensure that you protect the assets that you have worked so hard to acquire during the course of your lifetime.
To find out more about how our firm can assist you with all of your retirement planning needs, join us for a free seminar. You can also give us a call at 860-548-1000 or contact us online at any time for personalized one-on-one advice.