People preparing for retirement often fantasize about traveling and spending more time with their families. It’s easy to get swept up in the excitement and romance of retirement instead of addressing practical matters. Those who begin retirement with a proper foundation can enjoy more financial stability and lifestyle flexibility as they age. For those rapidly approaching their golden years, proper planning is of the utmost importance. Estate planning often goes hand in hand with preparing for retirement.
What estate planning moves do retiring adults often need to make to better ensure their comfort later in life?
Creating advance directives
It is unwise to ignore the possibility of decline later in life. Older adults may develop Alzheimer’s disease or other debilitating medical challenges that require support from others. Advance directives can make it very clear what type of treatment someone wants to receive based on their personal values. Advanced directives can discuss matters like resuscitation and life support. People can even provide clear instructions about anatomical gifts so that their loved ones don’t have to make those difficult decisions without guidance in an emergency or after their passing.
Drafting durable powers of attorney
Providing medical guidelines is only one of many important steps for people to take when considering the possibility of incapacity later in life. They also need to prepare for scenarios in which they may rely on others to manage their resources and personal affairs. Durable powers of attorney give older adults an opportunity to name someone they trust to manage their medical and financial matters. Otherwise, family members or even caregiving professionals could go to court seeking a guardianship over a vulnerable older adult.
Addressing long-term care costs
Many older adults take for granted that Medicare can pay for their treatment expenses as they age. However, Medicare has many coverage restrictions that leave people with gaps in their protection. Older adults may need to set resources aside to pay for a nursing home. They may want to plan so that they can qualify for Medicaid or secure long-term care insurance coverage. Older adults who explore the potential costs of nursing home care or in-home skilled support can then plan to cover those costs while living on a fixed income during retirement.
Taking the time to update, expand or create an estate plan while preparing for retirement can help people enjoy the most comfortable standard of living possible. The peace of mind that people derive from advanced planning can also be invaluable as they age.
