When retirement planning attorneys emphasize how important it is to make preparations for the future they do so for a very good reason. They are aware of the statistics and they know what happens to people who go through life with their heads in the sand hoping for the best.
If you have not looked into the subject you may not realize that entitlement programs for seniors are not a cure-all. Some people pass away and others become eligible for Social Security on a daily basis, so the exact figures is going to fluctuate. But at the present time, the Associated Press states that the average monthly Social Security payout is $1082, which equates to approximately $13,000 per year.
A recent poll that was conducted by the Associated Press in conjunction with LifeGoesStrong.com found that 25% of people who are nearing retirement age don’t have any retirement savings at all. As a result, a similar percentage of people who responded to the poll said that they would never retire, and this is understandable given the obvious limitations of Social Security.
You may say that there are cost-of-living adjustments to Social Security that will ensure ongoing increases. The fact is that there were no increases in 2009 or 2010 because the rate of inflation didn’t justify any adjustments. There is going to be an adjustment for 2012 however; Social Security recipients will see their checks rise by 3.6%. So an individual who is receiving the average Social Security payout will realize an increase of a whopping $39 per month.
Out-of-pocket health care expenses for seniors rose by 14.1% over the last two years. There’s talk in Washington about increasing out-of-pocket responsibilities for seniors in an effort to reduce spending on Medicare. So when you figure it all out you can see that Social Security is simply insufficient to provide you with a comfortable retirement, even in light of these occasional little boosts.
This brings us back to the notion of planning. Ordinary people who stick to an intelligently conceived retirement plan can actually realize their idealized visions of travel, relaxation, and leisure during their golden years. To create a path that leads to financial independence, simply take a moment to arrange for a consultation with an experienced, licensed retirement planning attorney.
Alan Augulis, Estate Planning Attorney
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