Q: I have retirement savings and I qualify for Medicare and Social Security benefits. Won’t that be enough to sustain my target income?
Unfortunately, it is impossible to be sure if the above combination will provide sufficient retirement income. Social Security benefits are constantly being reduced and the entire Medicare program is currently in a state of transition. According to the Social Security Administration, the average benefit for a retired worker was about $1,230 as of 2012. There is no guarantee that either of these programs will provide the necessary supplemental income to maintain your target retirement needs.
This uncertainty becomes especially applicable if you outlive your savings or if you suffer a long term medical care crisis. The rising cost of healthcare and especially Long Term Care can easily overwhelm your fixed income.
Q: I have a Will, do I need to update it?
An estate plan is effective until it is either directly revoked or revoked via a new estate plan. A good rule of thumb is that an estate plan should be reviewed after major life events such as:
- Becoming a parent or grandparent
- Experiencing a divorce
- Death of a spouse or other main beneficiary under your current plan
- Any major financial gain or loss
- Onset of bad health
Estate plans may need to be updated based on changes in the law especially as it relates to estate taxation.