It is now such a quaint notion: Find a job with a steady company. Spend decades working for this same business, perhaps moving up the ranks over the years. Cash in your chips around age 65, with a steady pension or stable account from which to draw funds for the rest of your days.
While that model may still be followed by a rare few, for most New Yorkers, their career and retirement path is far different. Most notably, retiring to a life of comfort at age sixty five is nothing more than a pipe dream for many nearing that mark today.
Changing Expectations
Consider the results of a recent survey commissioned by the Associated Press-NORC Center for Public Affairs Research. The polling sought to gauge American’s perceptions about retirement. Perhaps unsurprisingly, a majority of respondents planned to work during their retirement. Of all surveys respondents over the age of fifty, 82 percent claimed that they would likely work during their “retirement.”
This is likely due to multiple factors. On one hand, the recent recession undoubtedly affected the savings of many soon-to-be retirees, cutting into life savings and altering their plans. But a lack of money is not the only factor. Older Americans are now far healthier than they were in decades past. More medical options are available now than ever before to combat the physical and mental deterioration that often plagues residents as they age. This make continued work more realistic in all circumstances–that is, if one can still find a job.
Unfortunately, as discussed in a Market Watch story on the survey, few of those who continue to work claim to do so voluntarily. Only 6 percent of respondents said that they were working for pay in retirement simply because they wanted something to do. A far larger percentage did so for the obvious reason that they needed the money. This is a reminder of the well-worn adage that it is never too early to start planning for retirement.
Plan Ahead
Planning for retirement and beyond is a highly individualized effort. No two New Yorkers are in the exact same situation. Differences always exist between total assets, retirement expectations, family size, and other details. For this reason, it is prudent for all New York families to work with professionals, like an elder law estate planning attorney, to put a plan together that accounts for many of these details. For help in New York City, White Plains, White Plains, Fishkill, and many other communities, contact our team to see how we can help.