Protect your future, plan for your legacy

Financial planning is important throughout your life. Making sure you have basic protections in place, such as any life, health-related and disability insurance, to protect your assets is essential.

However, there are other types of protection you may wish to consider as you move toward retirement and beyond. If you’ve accumulated some abundance in your life, retirement assets, investments, real estate, and other savings you’ll want to pay attention. As you transition out of your career into your non-working years, it’s time to think about your longevity, your legacy and what’s next. Start by taking stock of where you are today in your life and reflect on the often overlooked financial considerations for continued protection of yourself, your health and your loved ones - for life.

Healthcare in retirement and your longevity

When planning for retirement and potential long-term care options, people often don’t calculate the high price of out-of-pocket health care costs. Not planning for this inevitability, along with adjustments for the fact that we are living longer with potential for nursing care concerns, can be a costly mistake.

According to the 2017 Retirement Health Care Costs Data Report released by HealthView Services, retiree healthcare expenses are expected to rise at an average annual rate of 5.5% for the foreseeable future – almost triple the U.S. inflation rate from 2012-2016. This means, a 55-year-old couple retiring in ten years will need up to 92% of their Social Security benefits to cover healthcare in retirement.1

If you are still working, there is still time to save more to cover these expenses. Look into what to expect from Medicare benefits and know this – it is not all encompassing coverage and you will often need to purchase supplemental insurance. Medicare does not cover dental, vision, hearing or long-term care (LTC). Services covered by Medicare often require some kind of copay and these costs add up over time. Also, be sure to look into LTC insurance, to see if it is right for you so you can have the care you need when you can no longer care for yourself. 1

Wills, estate planning and your legacy

There is more to estate planning than just having a will, which are not just for the wealthy. Whether you have a large or small estate, the benefits of estate planning could be worth considering. Although not everyone will need one, an estate plan ensures that your assets transfer to whomever you intend, and not into the wrong hands. There are other important planning elements, such as designating person(s) to manage your assets and make health care decisions for you if you are unable to do so for yourself.2

Estate planning elements:

  • Will/trust
  • Durable power of attorney
  • Beneficiary designations
  • Letter of intent
  • Healthcare power of attorney (or proxy)
  • Guardianship designations

 

Special needs planning for your loved ones

When thinking about planning for the future of your loved ones, if you have special considerations such as children or a caregiver of a person with special needs, knowing where to start and what resources are available can be one of the biggest challenges. Long-term special needs financial planning can be complex, especially with the many legal and governmental issues surrounding disability. The wrong decision could create a tax burden or render a loved one ineligible for government benefits. However, by properly planning, understanding government benefits, and utilizing the right legal instruments, you can help ensure your loved one enjoys the quality of life they deserve. Be sure to plan for a lifetime of continuous care for your child and talk with a specially trained financial professional to help you create a comprehensive strategy for your family.3

When you are ready to start planning for your future and your legacy, talking with a financial professional can help you prepare to protect all that matters to you at this stage of life, while allowing you to live out the life you’ve envisioned for yourself and for your loved ones.

This information is provided by Voya for your education only. Neither Voya nor its representatives offer tax or legal advice. Please consult your tax or legal advisor before making a tax-related investment/ insurance decision.

Sources:
1 Planning for the High Cost of Healthcare in Retirement, Forbes.com, Catherine Schnaubelt, June 6, 2018, Last accessed September 10, 2018, https://www.forbes.com/sites/catherineschnaubelt/2018/06/06/planning-for-the-high-cost-of-healthcare-in-retirement/#417aa616513d
2 6 Estate Planning Must-Haves, Investopedia.com, Glenn Curtis, April 18, 2018, Last accessed September 10, 2018, https://www.investopedia.com/articles/pf/07/estate_plan_checklist.asp
3VoyaCares, last accessed September 10, 2018, www.Voya.com/VoyaCares
 


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