In the last several decades, longevity has largely been increasing, particularly for women who may outlive their partners and need more funds set aside in retirement. The current mortality tables used by the IRS used life expectancy data from 2000, and new table updates will be based on data from 2010.
The life expectancy calculation will assume longer life expectancies at every age. For example, someone who had a life expectancy of 70 years will see an increase of just over 1.5 years. It is important to think about how this may impact your estate planning and life expectancy considerations for retirement. Having these details set aside can be instrumental in helping you with the best way to proceed with your estate planning.
Living longer or outliving a partner when you have jointly combined your retirement and other financial resources could mean problems for the spouse who outlives the other.
Likewise, funds that you may have set aside to transfer to future generations for estate planning purposes may need to be recalculated as part of your emergency or retirement funds. Especially if you do live much longer, you may also face costs from unexpected health care issues, requiring additional savings.
Planning ahead for a long life and the possibility of healthcare issues later on in that life is important for protecting your assets and saving appropriately. You might need help with elder law issues such as how to qualify quickly for Medicaid, and having the right lawyer to guide you through this can make a big difference.
Make sure that you consult with your knowledgeable estate planning lawyer in Virginia Beach about these complex issues.