There are many assumptions and ideas that people have about retirement and reitrement plans. Many of these ideas come from our parents and grandparents when they are speaking about retirement.  However, the retirement we are planning for is much different the retirement our grandparents, or even our parents, are preparing for in most cases.

With over 20 years of experience, Thornton Law Firm handles wills, trusts, living wills, and estate administration. We often have people approach us asking about how they should be preparing for retirement. We find that there are many ways in which people are misinformed about retirement that can greatly affect the way they need to plan. For that reason, we put together this list to help people get a better picture of retirement.

5 truths about retirement that should be considered when retirement planning are:

  1. Retirement Planning doesn’t end when you retire. Of the people who do have retirement plans, many don’t have a full plan. It’s common for most people to end their retirement planning at 65 when, in reality, there are many steps and stages over the years that follow for which they should plan.
  2. You will most likely live longer than your parents. How many years does your plan include? In the last 30 years, the US life expectancy has risen 4 years. That may not seem like a long time, but when planning for your retirement, it can make all the difference. With health trends and medical advancements, the current working generations can plan on that life expectancy increasing even more.
  3. Plan for health care to eat more of your retirement savings. There is a belief many people have that Medicare will cover most of their medical costs. Even if Medicare can provide as much for medical expenses that it does today, there will still be costs that you will still incur. Supplement Insurance may be needed for other costs.
  4. It’s up to you. More than ever, it’s up to individuals to prepare for their retirement savings. From a self-managed 401k to IRAs, we are now responsible investing for our future. Learning to invest, diversify, and grow your funds are the ways to having gold in our golden years.
  5. The way your retirement is spent is decided now. If you want the years of retirement to be spent traveling with many years of good health, the actions you take now must match. Regular exercise and proper dieting are essential.

So, do you have to adjust your retirement plan? There is much to prepare and care for in the coming years because your planning doesn’t end with retirement.