Most Americans entering retirement today are under considerable pressure to focus on their current living needs rather than on leaving a substantial estate.
Retirement can be a relaxing stage of life, but with any major change you’ll have a new set of challenges that could cause anxiety. Managing healthcare costs, debt, or fears of outliving your money are common stressors if you’re approaching or are in retirement.
Top Retirement Concerns
Some common concerns for retirees include:
- Paying for health care. Unexpected health care costs can throw a wrench in your retirement finances and can take up the majority of your budget.
- Maintaining an income. Without a regular income, you’ll have to be sure you can afford your daily expenses, and you might be unsure if social security will cover enough.
- Saving enough money. Americans typically live longer than previous generations, and the cost of living is rising.
- Having debt. The average amount of debt for Americans is increasing.
Another cause for concern is the disappearance of defined benefit pension plans. The effect was magnified by the economic crisis that started around 2008, as housing values fell and portfolios decreased.
Some seniors are intentionally using their savings to enjoy their retirement by spending money on their passions instead of worrying about leaving something for their children. This might be because many retirees have helped their children financially already by paying for college or weddings.
Plan for the Future
Regardless of what assets might remain for your beneficiaries, you should still make clear how those assets should be distributed. Retirement is about taking the time to enjoy loved ones and the things you’ve worked hard all your life for. Put your mind at ease by discussing your wishes with a TuckerAllen estate planning attorney who can provide appropriate estate planning advice.