Growing older in America today isn’t what it used to be. Twenty years ago, the average person’s life expectancy was 76 years1. Fast forward to 2016, and a woman turning 65 today can expect to live until 87 years old and a man can expect to live until 842. And believe it or not, one out of every four 65 years olds today will live past 90.
In just two decades, we’ve added at least 8 to 10 years to our life spans.
While living longer in retirement means having more time to enjoy your life, it also means your money needs to go further. As you plan your retirement lifestyle — and anticipate your years ahead — be sure to account for the following key details to help you enjoy retirement with ease and comfort.
You’ll Need More Income Than Previous Generations
Potentially living to 90 years old and beyond brings more years to account for in your retirement budget. And while you might choose to work longer before fully retiring, you may also have more years without receiving a pay check. As a result, many retirees don’t plan to stop working. In fact, more than one-third (39%) expect to earn income by continuing to work in retirement3. Whether you continue working now, want to work part-time in retirement, or plan to adjust your lifestyle — more than likely — you’ll need additional income strategies to fill the gap. Either way, be sure to calculate the money you truly need to last throughout retirement.
You’ll Need to Stretch Your Social Security Benefits
Social Security provides monthly income throughout retirement, but the amount you receive depends on how much you contributed during your career and when you start taking income. Although you can elect to start taking your Social Security benefits as early as 62 years old, the longer you wait to draw that money, the more monthly income you’ll receive in the long run. According to the Stanford Center on Longevity, people who delay taking their Social Security income and retirement savings from 65 to 70 years old can increase their incomes by 25 to 34 percent4.
You’ll Want to Address Your Life Insurance
Living longer in retirement may also mean you could outlive your spouse by many years. While life insurance needs tend to decrease the older you get, our longer lives also mean that you have more years to protect your life and household. Every family and retiree is different — so your needs may not be the same as your peers’. But one thing’s for sure: If you and your spouse still provide a portion of retirement income by working, you could be left in a bind should something unfortunate happen to either one of you5. Revisiting your life insurance strategies is a wise step when addressing your retirement needs.
Overall, retirement means something different to every person. Analyzing how healthy you are, how long you plan on working, and many other essential details can help you manage a retirement plan that allows you to live comfortably for longer. We’re happy to meet with you and discuss if you’re prepared for the retirement road ahead.
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