Due to medical advances, people are living longer and longer. According to Social Security Administration, a 65-year-old couple today has a 48% chance that at least one of them will live to be 90.
What’s the challenge?
The challenge is that people are living longer but a lot of people are retiring sooner. It’s not uncommon for someone to have more years in retirement than the number of years they worked. For example, if someone retired at 55 and live to 90, they were retired for a total of 35 years. If this same individual started working at age 25 and retired at 55, they worked 30 years and were retired for 35 years.
What is the biggest uncertainty?
As I put together retirement plans, one of the biggest uncertainties that we face when we put together these plans isn’t the overall returns in the portfolio, but it is life expectancy.
While medical advances have certainly allowed people to live longer, it’s important to make a plan to help ensure that your money can last as long as you do.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results