The Baby Boomer generation has proved to be a force to be reckoned with. Resilient and living longer than the generation before them, it seems that retirement is now a second phase in life and certainly not the last phase. However, with the pro of living longer comes the con of even more planning for the future. More specifically? Estate planning concerns.
An estimated 3.5 million Baby Boomers are expected to retire each. And that number could grow. But how many of them are truly prepared for the future with a proper estate plan? That is the real question. Here are some important estate planning issues that Baby Boomers should consider before retiring:
- Living longer means needing more money: Many retirement plans underestimate just how long a person will live. The last thing you want to be doing at eighty is looking for a job to support the additional ten years you didn't anticipate having to fund. A proper estate plan should be realistic and conservative when it comes to estimating future needs.
- The late bloomer divorce that no one saw coming: Sometimes a new phase in life could bring on the end of a relationship. No one expects to get divorced at retirement age but if it does happen, this could impact an estate plan.
- Children of Baby Boomers coming back home: Unfortunately, more and more millennials are deciding to return home after college. This is even while they start that first job. Unexpected expenses like a son or daughter living under your roof can seriously put a dent in a retirement plan.
These are just some of the challenges Baby Boomers are facing as they plan the next phase in their lives. What is important is to make sure you have an experienced estate planning attorney who can provide you with comprehensive and personalized counsel in California.