Preparing for Retirement: Necessary Considerations

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Introduction

Finding a perfect environment for retiring is a vital task for any individual hoping to establish a proper level of well-being at a senior age. Although preparing for retirement might seem simple, such issues as housing options, estate taxes, and saving opportunities can prove to be challenging without prior consideration and careful thought. To ensure that life during the senior years will be prosperous and less stressful, it is essential to review the characteristics of available retirement housing, the essentials of creating and maintaining a will, and the necessity to invest finances as early as possible. This report will focus on these major elements of beneficial retirement, also discussing the personal retirement planning decisions.

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Choosing Proper Housing: Calculating Expenses and Assessing Options

After leaving the permanent place of occupation, many individuals encounter a change in their usual expenses. According to researchers, there are several costs that frequently decrease during retirement, namely transportation fees, office clothes, payroll taxes, and tuition payments (McKenna, 2020). Nevertheless, such fields as medical care, housing, and food might require additional funds, as these expenses typically increase during senior years.

Furthermore, depending on the personal circumstances, additional financial payments, for instance, children’s education, might be needed. In this regard, given the costs of healthcare and the necessity to maintain a proper lifestyle, I plan to gather additional monetary resources to cover these needs, possibly allocating some capital from less financially dependent areas.

Considering the increased costs for housing and the limited resources available, it is highly pertinent to choose an accommodation that perfectly suits my retirement demands. An excellent opportunity available in my local community is the independent living strategy that incorporates the benefits of senior socialization and unconstrained retirement. As a small space dedicated to senior living, independent living communities contain multiple options for interacting with other individuals, engaging in activities, and simultaneously having the freedom to allocate personal time (Tripken et al., 2018). Furthermore, this type of retirement housing includes house maintenance and cooking service.

Nevertheless, there are some disadvantages to independent living, as some instances might not provide medical support, which is an essential attribute for a retirement community. After that, the costs of living are considerably high compared to other options.

An additional consideration concerns the subject of creating a will and transferring one’s possessions in case of death. To ensure the safety of an individual’s belongings, it is crucial to construct a valid document that will control the distribution of relevant resources. Individuals who are advised to obtain a will are usually seniors, people suffering from severe medical conditions, married, with kids and relatives, or those in possession of valuable assets. To establish a credible document, it is imperative to include necessary will elements, namely the capacity of the testator, the form of the will, and the administration of an executor (Peters, n.d.). Additionally, guardianship and trusts might be incorporated if minors are considered in the document.

A prepared will should be checked and corroborated by a public notary and witnesses, and, after that, it can be signed, becoming official. However, if any changes are needed after the signing, it is possible to add a codicil, an appendix for the document that reflects the alterations and should be signed in the same manner as the primary document. Finally, to avoid any complications, it is critical to store the will properly, either in a designated spot in one’s home, deposit box, or with legal authority, such as a lawyer or a probate court. This report has clarified the legal issues that might arise during the creation of the world and the necessity to account for numerous factors. Therefore, I will make sure to create my will as soon as it is necessary for me to allocate my possessions, attempting to resolve potential difficulties as soon as possible.

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Planning the future of the possessed estate is a significant endeavor to be completed. Filling an estate worksheet can tremendously aid the individual in organizing the relevant information and providing vital data regarding the marital and employment status, citizenship, and all current possessions. To manage the personal estate, it is helpful to devise an estate plan that names the beneficiaries, trustees for the financial affairs, and the costs of sustaining minor children, if applicable (Poppe, 2019).

Similar to the will, this document also incorporates estate taxes, executors, and the possibility to include changes. In order to develop a personal estate plan, I intend to organize my possessions, highlighting the resources that I would like transferred or managed. After that, I will decide how my belongings will be handled by the chosen people and acquired the help of an attorney to assist me in checking and signing the document.

Saving for Retirement: The Need to Begin Early

Gathering the resources for a successful retirement is a critical responsibility for numerous individuals. In the previous decades, many employers provided their workers with employment benefits that included reimbursements after retirement, beneficial addition to the Social Security payments. Given the assistance of the company, numerous workers often remained at their jobs, proving themselves loyal to the retirement compensations. Therefore, as maintaining a job allowed securing a comfortable way of life in their senior years, many employees decided to continue working for their organization.

In the case presented, there is a remarkable discrepancy between Maureen and Therese’s methods of accumulating pension funds. Although the investments and the annual percentages are the same, the difference in 10 years had severely impacted Therese’s savings. As Maureen started transferring the $300 immediately at the age of 25, she was able to amass a much larger sum than Therese, who began her investments only at the age of 35.

Saving for retirement can be a considerable complication for women, who are advised to start accumulating pension funds sooner than men. The primary reasons behind this recommendation are the lower salaries which result in decreased amounts of savings to be established. Furthermore, women frequently begin working later than men, thus necessitating additional financial input for the retirement finances. In this regard, it is beneficial to determine one’s net worth to calculate the overall income and possessions value. Typically, net worth is defined as the value of all personal belongings, excluding the fees and liabilities owed to other people or the government.

The average expenses might often begin to change during retirement. Such areas as transportation, working clothes, and payroll taxes become less costly for seniors. However, the fees for clinical care show the tendency to increase with age, and they manifest significantly during retirement. In addition, such costs as housing and food can also rise in this period, as supplementary living options and nutrients are needed.

Conclusion

To conclude, such aspects of retirement as the creation of a will, estate planning, and accumulating the pension fund, were discussed in detail in this paper. It is evident that preparing for a proper retirement is a substantial endeavor that requires thoughtful consideration from both legal and financial standpoints. Delegating one’s desires regarding personal estate and savings management should be completed cautiously and promptly, alleviating the negative consequences related to the lack of financial support.

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References

McKenna, K. (2020). Are you overestimating your expenses in retirement? Forbes. Web.

Peters, A. (n. d.). The 10 must have parts of a will. The Ashmore Law Firm, P.C. Web.

Poppe, E. S. T. (2019). Surprised by the inevitable: A national survey of estate planning utilization. UC Davis Law Review, 53, 2511-2590.

Tripken, J. L., Elrod, C., & Bills, S. (2018). Factors influencing advance care planning among older adults in two socioeconomically diverse living communities. American Journal of Hospice and Palliative Medicine, 35(1), 69–74. Web.

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BusinessEssay. 2022. "Preparing for Retirement: Necessary Considerations." August 2, 2022. https://business-essay.com/preparing-for-retirement-necessary-considerations/.

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BusinessEssay. "Preparing for Retirement: Necessary Considerations." August 2, 2022. https://business-essay.com/preparing-for-retirement-necessary-considerations/.