Life expectancy is higher, so your calculations could be wrong
This may not be of concern right now, but it may become one later in your life, or it’s already started to appear in between other thoughts. The average life expectancy rose to 78.6 years in the United States, according to research conducted by the Centers for Disease Control and Prevention. And while this is amazing news, it also brings about the problem that a lot of retirees don’t end up having that many funds.
The truth is that you may end up living way beyond that number, as this is dependent on a lot of factors. And, despite our best efforts, we cannot predict how long we will live or whether our retirement funds will be sufficient to last us the rest of our lives. This has become a huge concern for a lot of retirees, so it’s good to start thinking about means of outliving your income before you retire: look into certain products that offer a guaranteed income, like indexed annuities!
3 Responses
A lot of truths were spot on. Disappointed to see that there was no mention of Medicare Advantage Plans available from numerous major insurance companies that will pay a lot more than straight Original Medicare. Copay’s are modest and mostly all costs are fully paid when you hit the maximum out of pocket level. There is also the Gap coverage option. This is important info that should have been included.
My spouse and I waited until age 70 to start collecting social security which has made a big difference for our long term plans. The 8% increase per year for the four years after our age 66 regular retirement age gives us 32% more.
We have a moderate LTC plan which has a reasonable rate which will help IF we need it later in life.
This article does not address the federal taxes you will have to pay on those benefits based on ridiculous levels of income that have not been adjusted for years.