Your retirement date is something you think about throughout your working life, and something that is typically crafted after careful consideration of things like qualifying for social security, whether you’ve saved enough money and whether or not your spouse is working.
An early retirement could significantly disrupt your income and retirement planning but may also affect longer term plans such as your estate. One of the most important financial decisions you’ll ever make is deciding when to retire, but an increasing number of Americans are subjected to timing that they didn’t choose.
According to a recent study from Edward Jones, 40% of financial advisors found that their clients retired at a time when life circumstances forced them to do so, such as downsizing with a severance package or a health concern. This may mean significant changes for your existing estate plan and your overall financial strategy.
As you think about what assets you’d like loved ones to receive, you need to think about your own backup plans for how you will support yourself if you need to make a retirement choice sooner than expected.
While you may continue working and plenty of retirees do this successfully on a part time basis, having multiple plans and contingencies gives you some peace of mind that you’re always in the driver’s seat even when life circumstances make it feel as though you’re not.
Health issues that cause you to take an early retirement also raise questions about estate planning.
Retirement planning and estate planning often work hand in hand, or at least involve questions related to one another. By thinking about your plans as the multiple ways you address major concerns in life, you get confidence that you have protected yourself and your loved ones in this next phase of your life.
Talk to our Pasadena estate planning attorneys about how to craft a personalized estate plan.