17 Nov You and Retirement may be in for the long-haul: Are you prepared?
There are many facets to consider when you’re planning for retirement: when do I want to retire? How would I like to spend my retirement? How much do I need to save? What will my expenses be? However, no matter how thorough and detailed your planning is, there is still a huge unknown you may be overlooking, specifically – “how long will I live in retirement?” This is a very important thought to consider in light of the fact that life expectancy in the U.S. has increased by nearly two years each decade since the 1960s. This means that more than ever, retirees are living longer and longer due to advances in medical science.
What does this mean for you and your retirement? Well, no one can know for sure when they’ll “kick the bucket”, but if you’re married and retire at 62, statistics show that you or your spouse have a 47% chance of living till 90. Many Americans who say they are confident they’ll be able to rely on social security, 401k plans, and IRAs during retirement are not considering the fact they may outlive their resources. If your finances are depleted and you’re unable to work, what will your recourse be? Will your investments be enough for you to live comfortably for another 25 years after retirement?
“We found that many senior citizens are significantly underfunded and risk running out of money, especially since people are living longer than they used to and may need to support a two- or three-decade retirement,” said Mike Sante, managing editor of Interest.com.
One of the biggest expenditures for those who outlive the average age is healthcare. The average retiree will need at least $200,000 set side just for medical expenses alone. The keyword is “at least”, because your own healthcare needs may or may not be significantly higher.
What can you do to make sure you’re ready?
You should already be participating in an employer-provided retirement saving account if there’s one available to you. Individual Retirement Accounts (IRAs) should also be something you research right way. There are also other ways to jumpstart your retirement fund if you are starting late, such as home equity and other miscellaneous investments.
If you need guidance on the best way to get started and grow your money, we at Reliance Retirement Services would love to partner with you. Contact us today to see how we can help you find the peace of mind that comes with being prepared.