Thanks for taking the time to find out about our connection to the Orange County area. Here at the Schomer Law Group, we take our commitment to our neighbors in the Rossmoor community to heart. A planned community built from 1955 to 1961, the Rossmoor community is easily recognizable with its red brick “signature wall” bordering the entire community.
Rossmoor Residents Should Plan for Retirement
Clients often have the false impression that social security benefits and a basic 401K are sufficient for retirement. The truth is, it is important to create a real retirement plan so you won’t need to be dependent on government benefits, in order to have a comfortable retirement. Social security may not be a secure as you think. That’s why Rossmoor residents need a retirement plan and the Schomer Law Group is here to help.
Be Sure You Can Accumulate Sufficient Savings For a Comfortable Retirement
A huge part of retirement planning is being sure you have enough money saved up to support your financial needs once you retire from the workforce. It should go without saying that, the sooner you start putting money aside, the more you can have saved up by the time retirement actually rolls around. So, if you haven’t already, open a savings account and start making your regular deposits immediately. The sooner the better because you will be able to benefit from more compound interest.
Social Security Benefits May Not Be Guaranteed
Most of us are concerned about the certainty or stability of the government’s Social Security system. First, you need to understand a little about how the system works. All while you are employed, you are making contributions to Social Security through the FICA taxes that are automatically withheld from your paycheck. FICA stands for Federal Insurance Contributions Act. These contributions go towards paying Social Security benefits for other workers when it is their time to retire. Once it is your time to retire, you will receive benefits from the system, as well, based on your level of contributions. However, according to at least one study that has been published, the ratio of covered workers versus the number of beneficiaries under the Social Security program has decreased substantially.
The Future of Social Security Benefits
The concern that many people have is whether there will be sufficient benefits available by the time they retire; regardless of how much they may have paid into the system. With more and more people living longer than before, and more people looking to social security benefits when they retire, a greater burden is being placed on the Social Security system. Ultimately, the strain on the system may require the federal government to reduce social security benefits, or even suspend them entirely.
Planning for the Unexpected Cost of Medical Care
As we get older, the likelihood of developing medical problems usually increases, as do the resulting health care expenses. Without appropriate financial support, medical expenses often lead to an overwhelming financial burden. Therefore, one element of your retirement plan should be long-term insurance (LTC), the purpose of which is to aid in financing your health care needs during your retirement years.
What if You Want to Retire Earlier?
With Social Security, the earliest you can begin collecting retirement benefits is age 62. It is important to note, though, that the longer you can postpone collecting social security, the larger your payments will be when you ultimately do. In fact, you will not receive your full retirement disbursement, unless you wait until “full retirement age,” which has been increased to 67 years old, for individuals born in 1960 or later. If you were born before 1960, your full retirement age depends, instead, on the year you were born.
Social Security Benefits are Unlikely to be Sufficient
There was a time when an individual’s retirement was financed entirely by employers and government benefits. Now, though, with the reservations people now have about relying on Social Security, it is more necessary than ever for individuals to take retirement planning into their own hands. Even if there will be social security benefits available for you, they will likely be insufficient for providing a comfortable retirement. The purpose of the social security program is to provide only the bare minimum standard of living during retirement. Therefore, without proper retirement planning, your golden years may not be as comfortable as you hope.
If you have questions regarding estate planning, trust contests, or any other trust administration issues, please contact the Schomer Law Group either online or by calling us in Los Angeles at (310) 337-7696, and in Orange County at (562) 346-3209.
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