We Can Expect to Live Longer, But Our Money Must Last Longer, Too!

We can expect to live longer, but our money must last longer, too!

Good news! You more likely than not can expect to live a much longer lifespan than in previous

generations. That's the conclusion from the latest mortality tables released last October by the Retirement Plans Experience Committee of the Society of Actuaries. According to the updated tables, a 65-year-old male alive today has a life expectancy of 86.6 years, two years longer when compared to the 2000 mortality tables. It gets even better if you are female because a 65-year-old female today has a life expectancy of 88.8 years, an improvement of 4.2 years over the 2000 tables.

So we can expect to be around much longer, enjoying our golden years and spending time with our loved ones. On the other hand, that also means that now, more than ever, the need to make sure you have enough savings to last through your lifetime is crucial. How fun will it be when you have to face the ordeal of outliving your savings?

Just how much will you potentially need throughout your retirement years? Well, the answer to this question depends on each individual’s particular set of circumstances and could be best answered by a competent retirement adviser. But let me give you some generic insight.

Let's say you are the typical 65-year-old male and you live through age 86.6, as suggested by the latest mortality tables, and you require just $2,000 a month ($24,000 a year) to supplement your retirement income. Without accounting for any adjustment for cost of living increases, that comes to approximately $528,000. For the typical female spending 24 years in retirement, that amount will be $576,000. What if you needed $2,500 a month instead? You’d be looking at approximately $660,000 and $720,000 for the typical male and female respectively.

It is important to point out that these numbers are just averages. So in all likelihood, some folks will fall below them, but others will exceed them. My wish and prayer is for you to exceed them and live a long, healthy life. But keep in mind that it is up to you to make sure that you take the necessary steps to be ready financially. Hopefully I have given you the motivation to act and make sure that you are headed in the right direction.

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Want an independent assessment to confirm that you are on the right track when it comes to saving for your retirement, including the money you will leave to your heirs? Come in so we can help you to  objectively evaluate your current approach. Visit LaserFG.com or call 877.656.9111 right now to book your complimentary session.