Retirement can be a dream come true, but it also holds pitfalls for us all. Being aware of the reality of what is to come is an essential part of planning for the later years of your life. Figuring out what is going to happen at any point in your life isn’t easy, in fact, it’s downright impossible unless you have a magical crystal ball. Let’s face it — those don’t turn up that often and are about as common as a genie in a lamp. Investing wisely rather than rubbing old lamps and hoping for the best is a better way to go.
Planning for retirement involves betting on how long you are going live. Without an idea of how long you might live you won’t be able to plan for the financial needs of the years you have left.
Life expectancy in the United States was 78.7 years when we entered the pandemic. After COVID ripped through the population and the economy we saw a 0.08% increase from 2020 rising to 78.99 years on average.
Compare that to the rest of the world's life expectancy which in 2021 is just 72.81 years we see that as Americans we have to plan for a bit longer when it comes to our retirement. The Social Security Administration says that approximately one-in-four Americans who are 65 years old today will live past the age of 90. If you retire in your mid-sixties, that could spell out a protracted retirement.
If you want to get an idea of how long you might be expected to live, access the Social Security Administration's life expectancy calculator online. https://www.ssa.gov/oact/population/longevity.html
Insert some data about yourself and it will show you the average number of years they calculate you might live. Of course, it isn’t a guarantee. But it does at least give you an idea of where to start when it comes to saving for your retirement.
Being able to plan accurately for your later years means you have more power and certainty over your own survival and ultimately the quality of your life overall. The truth is no matter how much you plan or save, the exact time we have left is uncertain. No one knows when or where they will shuffle off their mortal coil, but we can plan as best we can for the time we may have left.
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
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