Texas residents who are part of the baby boom generation are starting to think more and more about their retirements. Advances in medical care mean that people today often live for 20 or 30 years after a regular paycheck becomes a thing of the past, and analyzing post-retirement income and cash flow in relation to assets is an important part of estate planning.
One of the primary considerations for soon-to-be retirees is where they will live during their golden years. One choice would be to remain in their current home. While this may seem an attractive option from an emotional standpoint, the costs involved could become a real burden as time goes on. Additionally, expenses like property taxes and maintenance could become crippling for a surviving spouse if their partner were to die.
Assisted living is another option, but the anticipated costs in the coming decades for this type of arrangement could make sober reading for couples who have not planned adequately. According to a June 2013 study conducted by Long Term Care Group, the cost of a room in a nursing home is expected to rise from $38,011 a year in 2013 to more than $164,000 in 2043. Even more alarming is that the cost of a home health aid is expected to more than quadruple over the same period to a staggering $294,482 per year.
While statistics like this may be alarming for the unprepared, there is usually still time to take steps to ensure a comfortable retirement. An attorney with experience in estate and financial planning may be able to provide options to clients facing a long retirement. With the help of legal professionals, future retirees can discover strategies to help minimize their tax exposure while safeguarding their financial futures.
Source: Forbes, “Planning To Make The Right Move In Retirement“, Carla Turchetti, December 10, 2013