Estate Planning

Estate Planning

Without a well-planned retirement nest egg, you may be forced to liquidate your assets in order to cover your expenses during your retirement years.

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  • The aging population is causing fewer contributors.
  • More people are retiring due to increased longevity.
  • Corporate collapses, such as bankruptcy of Enron negatively affect private pension plans.
  • Defined pension plans do also fail from time to time.
  • Many employers shift from defined-benefit to defined-contribution plans.

Old age typically brings medical problems and increased healthcare expenses.

Living out your retirement years in comfort while also covering your medical expenses may turn out to be a burden too large to bear.

Unforeseen illnesses, the financial needs of your dependents, and the uncertainty of Social Security and pension systems are but a few of the factors at play.

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Savings and investments should be part of a monthly budget even when young or just starting a career.

You cannot save enough if you are waiting until your late 30's before thinking about savings and investments.  Then credit cards and loans will drag the savings with added responsibilities like marriage, children, care of parents, etc.

Retirement Planning and importance of Retirement Plans

wisdomtimes.com

Growing older without a spouse or adult children means you'll need to build support who can help with your finances, make medical decisions and prevent you from becoming isolated as you grow older (extended family, trusted friends, and paid professionals):

  • Find people who will manage your financial and medical affairs, people to stop by, run errands, or drive you to appointments.
  • Find out what they're willing to do, and make known your wishes.
  • Revisit these plans often.
  • If you don't have a friend or family member to carry out your wishes, consider working with a professional fiduciary, such as an accountant, lawyer, or trust company officer.

Planning for Retirement as a Single Person

kiplinger.com

Why you should plan to plan ahead for retirement.
  • Getting stuck in the savings mindset. Saving should be formed as a habit. The amount saved can be increased over time.
  • Medical emergencies. With increasing age comes more health problems. Medical claims might not always suffice.
  • Inflation needs to be taken into account.
  • No state-sponsored pension plan. Not all countries have state pensions or social security benefits.
  • Fragmentation of nuclear families.  With fewer children per family, retirement should be planned without help from your family.

5 Reasons Why Retirement Planning Is Important

sg.theasianparent.com

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