The 7th annual Retirement Plan Survey found that 30% of employers are planning to reinstate previously eliminated or reduced matching contributions in 2011. But the bad news – over 40% of those responding to this survey did not have plans to reinstate the eliminated or reduced company matches.
This news makes retirement planning and estate planning that much more important. Gone are the days of company pensions and with people living longing, planning for later years must be done sooner, rather than later, in order to achieve your goals.
Even during an economic downturn, saving for retirement is still important. Worried about the market? Nine in 10 of the popular retirement plans are at least back to where they were in October 2007, the peak of the stock market. Many investors who kept their nerve and continued putting some of their paycheck into a 401(k) during the market’s worst months are now ahead. Don’t let the economy be your excuse.
Just like estate planning, retirement planning is an ongoing process. If your ‘nest egg’ took a hit and has not yet recovered, you need to reevaluate and regroup. Don’t ignore it, don’t simply stop contributing.
These days estate planning is not just about planning for your death, it has come to mean planning for life as well, and retirement plans need to coordinate with your estate plan to provide a comprehensive plan for later years. Working with an estate planning attorney allows you to put together a plan to meet your specific goals and needs, and to get the guidance you need for your plans during difficult times.