People are living longer. It’s great. We are reaching old age in better health and increasingly can look forward to long, happy lives. But the extra years can be extra cost- how does living longer affect retirement planning?
Over the past 170 years, in countries with the highest life expectancies, the average lifespan has grown approximately 2.5 years every decade, or about six hours a day. However, longer life spans also places additional strains on the economy. If we live longer, that requires more medical care, more years of retirement, and significantly higher cost.
Forbes estimated that you needed at least 8 times your ending salary in order to cover retirement expenses until age 92. However, that is the minimum requirement. It also assumes you have other outside savings, and that you receive Social Security payments, and that your income is growing by 5% a year over general inflation with no breaks in employment or savings. This may not be the case for everyone.
Retirement is a growing concern. Medical costs are higher. A rapidly growing population of older adults are expected to strain Social Security’s current resources. Economic difficulties have made it difficult for some to save for retirement at all. Some have lost savings. Some dire estimates say nearly half of Americans aren’t financially prepared to retire.
However, despite the doom and gloom, retirement is not impossible. It just takes planning and foresight implemented today. At Sinclair Risk and Financial Management, our Connecticut financial planners offer a number of retirement planning strategies both to individuals and companies alike. We’ll evaluate your assets and income, speak to you about your risk appetite, and assess what type of vehicle makes most sense for your present situation and your vision for the future. We will then present you with alternatives and discuss the benefits, risks, and tax implications, among other key issues.Contact us today for more information. (877) 602-2305