The retirement planning landscape has changed drastically over the past couple of decades. In the past, most workers could count on retirement benefits from their employers. Defined benefit pension plans guaranteed them a fixed income payment throughout their retirement years. Today, most Americans are responsible for planning their own financial security during retirement.
Count on living longer than you expect. One of the first important decisions you have to think about is how long you might live. According to data compiled by the Social Security Administration:
- A man reaching age 65 today can expect to live, on average, until age 84.3.
- A woman turning age 65 today can expect to live, on average, until age 86.6.
But average life expectancy is a mid-point, not an end-point. About one out of every four 65 year olds today will live past age 90, and one out of 10 will live past age 95. And average life expectancy continues to increase. Plan on the probability of living much longer – perhaps 30 plus years in retirement.
Financial planning is more than finances. It’s about feelings and emotions. It’s about finances and health. How long you will live is the most important and unpredictable variable in your financial plan. Planning a retirement that is both solvent and satisfying is very difficult - maybe next to impossible.
The good news is that we have spent the last couple of years developing a groundbreaking retirement solution. It allows you to turn the wealth you have today into a steady and certain standard of living though retirement for you and your spouse.