Having the ability to enjoy life after retirement is an important calculation in determining your retirement age but new research has shown that many people are retiring a bit earlier than they anticipated which impacts their financial savings and even their estate planning.
Among those who has already retired the average age of retirement is 60.5 years, although the expected age for those who have not retired is 62.5 years and nearly half of all couples recently interviewed disagree on the age they expect to retire. Even a couple of year can make significant impacts in your social security income benefits as well as your projections from your retirement fund. Anticipating to work many years beyond 60 could be problematic if you have a health condition or other caregiving needs that require you to exit the workforce.
You might also get tired of working altogether and want to make a quicker transition into retirement but if you have not planned appropriately in terms of finances, you may struggle to get to this point. Having a team of professional advisors, such as a financial advisor, an estate planning specialist and an accountant can all help you make projections for the future that account for various scenarios and possible risks.
When it comes to retirement it’s got to work hand in hand with your estate strategies. Perhaps you want to set up a trust to protect assets but in a way that makes those assets accessible to you if you need them. You could do this using a living trust, for example.
Or perhaps you want to start thinking about gifting strategies to pass on assets to your loved ones now while getting the most out of tax advantages. These are all ideas you can discuss when meeting with a Pasadena, CA estate planning law firm.