When you hear retirement planning attorneys emphasizing how important it is to make plans for the future you would do well to take their advice seriously. The statistics indicate that a very significant percentage of Americans wind up in a difficult position when they reach the latter portion of their lives, and this is in large part due to a lack of planning and unrealistic expectations regarding entitlement programs for seniors.
The majority of people who receive Social Security say that it comprises the lion’s share of their income. In fact, their monthly benefit accounts for at least 90% of the total income of one out of every three Social Security recipients. The exact figure is going to fluctuate depending on the ebb and flow of people coming and going from the Social Security rolls, but according to the Associated Press the average monthly Social Security benefit is $1082 right now. This is why planning for the future is so very important.
Living on a fixed income can be difficult, but the Social Security regulations do allow for periodic cost-of-living adjustments, and these potential increases are tied to the rate of inflation. There were no increases at all in 2009 or 2010, but during that time the average out-of-pocket health care expenses of senior citizens went up by 14.1%. When you are living on $1082 per month or thereabouts these increases are difficult to swallow, especially if your income is not going up to match.
The good news is that there is going to be a cost-of-living adjustment for Social Security recipients 2012. The monthly benefit of people on Social Security is going to rise by 3.6%. Given the fact that the average annual income derived from Social Security is about $13,000, this will equate to a $39 per month raise for the average senior citizen on Social Security.
If you’re looking for motivation with regard to making preparations for the future, consider the above statistics. The only way to be sure that you will be able to retire in comfort is to take control of your own destiny. If you have not already done so, now may be a good time to make an appointment with a retirement planning attorney to create an intelligently conceived plan that leads to a comfortable retirement.
Latest posts by Saul Kobrick (see all)
- 529 Plans: Planning for Education with a Tax and Asset Protection Bonus - September 10, 2019
- The Importance of Communicating Your Plans - September 5, 2019
- Planning for the Unexpected - September 3, 2019