Those who want to create a solid plan for retirement should consider reaching out to an elder law attorney. Talking to an elder law attorney to create a retirement plan is not just something that you should do when you are close to the retirement age. In fact, the younger you are when you get help, the better your chances are for a secure future. Today, far too many seniors rely on Social Security as their only source of retirement income. Social Security used to be part of a “three-legged stool,” which included a pension from an employer and savings as the other two legs. Unfortunately, pensions- especially defined benefit pensions- are becoming increasingly rare and many people struggle to save.
Social Security does not provide enough for most seniors to have a comfortable retirement. There is also a risk that the Social Security trust fund will run out of money, necessitating a cut in benefits or a raising of the retirement age. This is why leading presidential candidates are looking for ways to fix problems with Social Security. If you don’t want to count on politicians to fix the issue, however, you need to be proactive.
Reaching out to a Vermont elder law attorney can help you to get on the right path to creating a secure retirement future for yourself. Unsworth LaPlante, PLLC provides legal representation to clients of all ages who want to set retirement goals, determine how much to save, and take advantage of accounts which provide tax breaks for retirement savings. To get started creating your plan to save for a secure future, give us a call today.
Could Expansion of Social Security Help Seniors?
WMUR reports that Vermont senator Bernie Sanders has made the expansion of Social Security benefits a part of his key theme on the campaign trail. Sanders is running as a Democratic presidential candidate and stated: “In my view, when so many seniors are struggling to keep their heads above water economically, we have to expand Social Security benefits, not cut them”
His website explains that one in five senior citizens in the United States has an income of just $8,300 annually- which is not enough to live comfortably on, especially in light of rising healthcare and drug costs.
Sander’s plan would provide seniors with a Social Security increase and would increase the money paid into the Social Security trust fund. There is currently a cap on the amount of income which workers pay social security taxes on. Sanders would lift the cap for people making more than $250,000 annually, so they would pay Social Security taxes on income above this $250,000 threshold as well.
With the revenue raised from taxing more income, benefits could be increased for seniors by an average of $65 per month. Cost of living adjustments could also be higher, and the minimum benefit amount paid to low income seniors could be raised so there would be fewer senior citizens living in poverty.
Unfortunately, there is no guarantee that this plan, or any similar plans to increase benefits, will ever come to fruition. There are great political divides on the concept of Social Security, with some lawmakers exploring different ways to increase revenue while either increasing benefits or keeping them the same and other lawmakers looking for solutions to cut down on the cost of entitlement programs. As long as politicians remain unable to agree upon a solution, Social Security is likely to continue unchanged unless financial problems for the trust fund force a cut. This means benefits will likely remain inadequate to support some seniors for the foreseeable future.
You can avoid being forced to count on Social Security as your only source of income if you set aside money in IRAs, 401(Ks) and other types of pension accounts. An experienced Vermont elder law attorney can assist you in developing a plan for your retirement security.
How a Vermont Elder Law Attorney Can Help You Achieve Retirement Security
There are different types of IRAs, which have different types of tax treatment and which have varying rules and restrictions for who can contribute and the amount that can be contributed. Those who want to save for retirement should get legal advice from experienced professionals so they can determine what savings plans are best for them.
To learn more, join us for a free seminar or contact us to get personalized advice about your retirement situation. You can give us a call at (802) 879-7133 or contact us online today so we can get started on helping you to achieve financial security in your golden years.