The questions about retirement planning, more specifically about the sufficiency of income during retirement years, is coming up more and more in our client meetings. To some extent, this happens when people realize the limitations of social programs that are in place to assist senior Americans. There are those who have every expectation of retiring because they have been paying into the Social Security program all of their lives and they assume that all their medical expenses will be covered by Medicare.
They may not look into the matter all that deeply along the way, confident that “the system” will provide. Then once they actually recognize just how little they will be receiving via Social Security, as compared to their expenses, they suddenly realize that they are not going to have the financial resources they need to retire.
This is a figure that will change regularly as people rotate on and off the Social Security ledger, but the Social Security Administration has recently reported that the average monthly payout is $1082. This is certainly not going to be enough for most people to support their desired life-style. Even if you are eligible to receive more than the average amount, Social Security alone is probably only going to provide you with a Spartan existence.
Another thing to consider is the fact that Medicare does not cover everything. For example, it does not cover long-term care. Assisted living is expensive and most senior citizens will eventually need long-term care.
The suggestion here is to recognize the fact that time flies and your retirement years will be upon you before you know it. To be prepared you must plan ahead intelligently in advance, and this is best done with the assistance of a good Kansas City retirement planning lawyer.
Author, President and Founding Attorney
Parman & Easterday