As Gen Xers enter into their 40s and 50s, it is time for them to become active in the creation and execution of their retirement planning. There are many things to consider, including finances, investments, insurance policies, legal documents, living arrangements, and healthcare. It is advisable to make a detailed checklist within these categories and take action on each item. Meeting with an attorney can help you establish overall goals for your retirement and legacy planning while ensuring the steps you take will lead you to retirement success.

With regards to longevity, things may not be what they seem in the United States. While the world is experiencing an increase in life expectancy, Americans have seen a life expectancy decline for three years in a row. The Center for Disease Control and Prevention (CDC) considers this a worrying trend. Assessing life expectancy based on these CDC numbers using their traditional approach is just one part of the equation for Gen X retirement planning because the statistic is derived from birth years while retirement years are calculated from age 65 and beyond. Yes, some Americans are living until the age of 100, and fewer are having heart attacks in their 50s because of prescription medications; however, according to the Smithsonian Magazine, there is “no large extension of adult lifespan in old age.” Making a reasonable estimation of your life expectancy is crucial as it affects planning for how long retirement will likely be and the amount of money needed to cover associated expenses.

MDVIP Health and Longevity Survey reveal that more than half of Gen Xers want to live past 90 years of age, with some wanting to make it to 100, and yet, nearly half have not had a comprehensive medical exam in the past five years. One-third of Generation X avoids going to the doctor at all out of fear of finding something medically wrong. Two-thirds admit they could be doing better when it comes to regular exercise, eating healthy, maintaining a healthy weight, and managing stress levels. There is good news, however. Generation Xers have a reasonable amount of lifespan left to identify changes that need to be made and implement them. Barring an unforeseen accident or illness, time is still on the Gen Xer’s side to make their retirement a success story.

The face of retirement has changed. The vision for most retirees is a full life bustling with activity and interpersonal relationships. Semi-retired is how many prefer to see their goal. There are many excellent reasons to keep working beyond age 65. Continuing to earn an income from work is great for health reasons and economic reasons. Generation X will further test the solvency of social security benefits after most of the baby boomer generation will have stressed the federal program to its limits. Staying productive and useful are key elements to financial well being, happiness, and long-term health. Entrepreneurial pursuits and consulting are more accessible than ever with the advent of the World Wide Web online community. Try pursuing or inventing a new career, perhaps something you have always dreamed about doing.

Joint life expectancy, whether married or not, is an important consideration when planning for and working toward retirement goals. According to the Vanguard Group, a heterosexual Gen X couple where both partners are age 50, the female partner has a 50 percent chance of reaching 85 years of age while her male counterpart only a 38 percent chance of reaching that same age. Since the couple is most likely to pass away at different times, factoring in the longevity of the surviving partner is crucial to planning. When extending longevity retirement scenarios understand that what is discretionary spending for fun in your 70s and 80s may shift to cover increasingly extensive medical aid and expenses in your 90th decade and possibly beyond. A financial planner can help you to create scenarios that will accommodate repurposing of monies.

We welcome the opportunity to work with you on your retirement goals to help create a legal plan that supports those goals.

If you have any questions or need guidance in your planning or planning for a loved one, please don’t hesitate to call our Euless, Texas office at (817) 462-5454 or click the button below to schedule an appointment.

Schedule an Appointment Now!
Choose your topic and meeting time and we’ll get it on th books.

To comply with the U.S. Treasury regulations, we must inform you that (i) any U.S. federal tax advice contained in this newsletter was not intended or written to be used, and cannot be used, by any person for the purpose of avoiding U.S. federal tax penalties that may be imposed on such person and (ii) each taxpayer should seek advice from their tax advisor based on the taxpayer’s particular circumstances.

Nothing in this message is intended to provide legal advice.  This message is for educational purposes only.