Every person needs to plan for retirement. Individuals can never discount the importance of securing their legal and financial future. Many people put this planning off until retirement age nears, which can be a mistake.
Seniors need a plan to ensure a comfortable retirement and not continuously worry about money, where they will live, and how their estate will be distributed. They may want to consider senior living arrangements or plan to live with family members. Legal and financial planning has many aspects. Seniors often need help with this process to ensure security and peace of mind as they age.
Legal Planning
When it comes to legal planning, seniors must complete many documents to express their wishes regarding their money, property, and healthcare services once they retire. These documents are also used if they cannot make decisions themselves and need someone else to make them.
Most people think of wills when they consider legal planning. These documents outline how the seniors wish to have their property distributed when they pass. If a senior does not have this document, the state determines how the assets are distributed.
Seniors should also have a power of attorney, naming someone to handle their financial affairs if they cannot. These individuals will pay their bills, manage their investments, and make monetary choices for themselves until they can resume this task.
Advanced healthcare directives are recommended for seniors. They detail what medical care the individual wants if they become incapacitated. Often, these directives outline whether they wish to have a life support machine and a do-not-resuscitate order. When people cannot speak for themselves because they are injured or ill, the advanced healthcare directives will be referenced to learn their wishes.
Financial Planning
Seniors must also plan for their financial future. They want to ensure they can maintain their standard of living once they retire while still covering their projected expenses. They need a budget outlining their monthly earnings and expenses to do so. This budget ensures they have enough money to cover regular expenses, healthcare bills, leisure activities, and unplanned costs.
Seniors often invest their money to grow their wealth. When doing so, they need to consider their risk tolerance and time horizon. As the person nears retirement age, they need to adjust these strategies to ensure they remain aligned with the individual’s retirement goals.
As people age, they need to reevaluate their insurance. Health insurance is necessary for seniors, and individuals may wish to purchase supplemental insurance above and beyond their Medicare. They may also want to invest in long-term care insurance to ensure they can pay for any expenses related to senior living arrangements they may require. At this stage, the senior should also reevaluate their life insurance. They no longer have young children who must be cared for upon their passing, and they may wish to adjust this coverage to reflect better where they are in life.
Seniors must prioritize legal and financial planning to ensure a worry-free retirement. Nobody wants to be stressed over their finances or legal matters during the final years of their lives. Work with a financial planner or estate planning expert to ensure the senior has the funds they need for their desired living arrangement, activities, and more. When their retirement plans are achieved, they will have a higher quality of life.
