Aging and Elder Care

Some guidance for every step of the way, so you can feel comfortable and confident in your retirement.

Planning for your future is important at any age, but when you’re close to retirement, you’ll want to make sure you’re set up for success. If you feel overwhelmed or are looking for some guidance, there are financial advisors and legal counsel who are available to assist you every step of the way, allowing you to feel comfortable and confident in your retirement.

Retirement Financial Planning

Retirement planning helps to ensure that you are set up to live comfortably during your retirement years. Every dollar you save leading up to your retirement contributes to a successful future. When preparing to live off a fixed income, it’s important to establish a plan with your spouse, partner, or loved one who will share in your retirement. Knowing that your goals and dreams are aligned will make planning that much easier.

When you put some thought behind your retirement plans, you can start by asking yourself these questions:

• What age do I want to retire and where do I want to live?

• What will my lifestyle look like?

• What do my retirement incomes equal? (Social Security, 401k, IRA, pension, etc.)

The answers will provide you with a good baseline for determining what is needed for your retirement and how you can adequately prepare.

In addition to the questions above, it’s essential to think about what you’ll be spending in retirement. You’ll want a good understanding of what your daily spending habits total, or if there are times of the year you spend more or less. As you age, you’ll also want to factor in unexpected health care costs. This could include copays, out-of-pocket costs, or even dental care and assisted living costs. According to NerdWallet, you should prepare to replace approximately 70-90% of your annual pre-retirement income for retirement expenses. For example, if you make $90,000 per year before retirement, you’ll likely want to plan to have between $63,000 and $81,000 in retirement. This income would be made up of both savings and Social Security payments.

Finally, you’ll want to look at your housing situation. Are you going to stay where you are? Downsize? Find a retirement community? Sell your house and move somewhere tropical? The possibilities are endless, but you should identify all your viable options and look into costs associated with each to plan accordingly.

Retirement Living

Retirement communities offer those entering retirement (or as young as 55+), and beyond, a community designed to fit the lifestyle of older adults. Homes are typically fit to satisfy smaller families of one to two people, offer single-level living or condo-style homes, and are low- or no maintenance, offering several amenities. Many people choose to sell their larger homes and downsize to a retirement community for the built-in neighborhood, making socialization easy and fun. The social interaction seniors receive from living in a retirement community provides them with a higher quality of life and even potentially reduces the risk of dementia.

When looking into a retirement community, ask friends or family who may already live there what they like about it and see if it’s a lifestyle you’d like for yourself. When deciding on a specific community, think about where you’d want to live. Do you want to stay close to family or move somewhere warmer? Do you want to move close to the city or out to the suburbs? You’ll also want to look at the activities and amenities offered at each community to see what piques your interest. If your faith is what grounds you, you may find a retirement community that’s rooted in religion. Or if you want to maintain your active lifestyle, look for a community offering outdoor activities, yoga, or walking groups. There is something for everyone; you just have to put in the time to search for a community that suits you.

When deciding on a new home, be sure to research costs. While the price of the home may fit nicely into your price range, the extracurricular activities associated with retirement communities may have additional fees. You’ll want to know all costs up-front to make sure you’re setting yourself up to maintain your quality of life.

Elder Law

Having a legal professional assist in elder law planning will set you and your loved ones up for success in later years. Elder law planning helps ensure that seniors are financially prepared for their aging care and often helps navigate the complex legalities of state and federal regulations regarding their aging care decisions. Attorneys who specialize in this type of law aid in anticipating future medical needs, financially preparing for long-term care solutions, protecting assets from Medicaid spend-down, and can assist with qualifying for long-term benefits.

When aging parents or loved ones are deemed incapable of making responsible decisions on their own, they may have a “guardian” appointed to make decisions for them, as granted by the court. This guardian will take ownership of decisions including legal, financial, and health care and can work closely with an elder law attorney to make sure the loved one is well cared for. There are also alternatives to guardianship should a person be able to make some decisions, including power of attorney, representative, conservatorship, or revocable trust. These options should be considered, if possible, as they are less restrictive to the aging individual than guardianship.

Creating a relationship with an attorney early on in your elder care can allow you to gain trust and a mutual understanding of your wishes as you age. This professional will be most apt to provide you with the knowledge you need to navigate the challenging waters of elder law.

Estate Planning

No matter your age, you should be prepared for what will happen to your assets should you die. Focusing on wills and trusts, estate planners can assist you in laying out a road map for your children, pets, home, and other assets to ensure that everything is taken care of the way you intended. Estate planning starts with a solid relationship with an attorney who understands your financial state and your wishes for how your assets should be distributed. Estate planning is typically fluid and could change often with births, deaths, marriages, divorces, and other large life events.

Estate planning can also assist you in identifying a power of attorney who could handle your affairs should you be incapacitated, and creating an advance health care directive to name someone who could make health care decisions if you’re unable to do so yourself.

Younger families may choose to focus their estate planning on building a living will and naming guardians and trustees should both parents die unexpectedly, while aging adults focus more on estate planning and Medicaid issues. Whatever your circumstances, it’s important to find a legal professional you can build a relationship with and trust with your future.

Setting yourself up to be financially sound could make your golden years exceedingly more enjoyable. Knowing that you and your loved ones will be well cared for makes the time and effort you put into researching and educating yourself on the ins and outs of retirement planning, elder law, and estate planning all worth it.