Employer-Provided Retirement Savings And Your Estate Plan
The term “the Great Resignation” has been all over the media for the past year, but it has different connotations depending on the age of the workers to which it is being applied. For younger workers, the conventional wisdom is that a “work stinks” attitude is an essential feature of the Zeitgeist, and that the young generation may find a way to rebuild our economy in ways that do not involve trading hours for dollars. In the context of older workers, it is about workers deciding that they are ready to retire. When you are young, you can make decisions based on the assumption that a lot of things will change in your remaining years; you might find a new passive income stream, or you and a group of your friends might use your severance pay to buy a piece of land in the middle of nowhere and grow all your own food, or the idea of universal basic income might catch on to the extent that, with a little bit of frugality, you will not need to work. If you are above the age of 55, though, you cannot assume that a windfall is waiting for you in the future; you must make decisions based on the money you have now. A Tampa estate planning attorney can help you with some of those decisions.
Most People Are Not Saving Enough for Retirement
Jordan Rosenfeld’s recent report on Yahoo news contains some sobering statistics about the retirement savings of current members of the workforce:
- 77 percent of people currently employed in the United States are contributing to retirement accounts set up by their employers.
- By age 65, the average American worker with a retirement account will have just over $107,000 in their retirement account. While saving up that much money is certainly an accomplishment, it is not enough to sustain you throughout your retirement years. If your retirement savings has to sustain you for 12 years (based on the standard retirement age of 65 and the average life expectancy of 77), your savings will provide you with a monthly income of only $310. Estate planning lawyers encourage you to plan for 25 years of life as a retiree.
- Approximately half of all workers above the age of 55 take money out of their retirement accounts before they retire. Aside from the penalties you pay when you do this, it will reduce your monthly income or require you to stay in the workforce longer.
Contact David Toback About Including Thinking Beyond Your Retirement Account
Developing a successful estate plan means looking at the big picture about your assets and anticipated income and expenses; it may require you to make strategic purchases now or downsize your lifestyle. A Central Florida estate planning lawyer can help you if your employer-provided retirement savings is not enough to sustain you as your only source of income during retirement. Contact David Toback in Tampa, Florida to set up a consultation.