Wednesday, November 16, 2011
YOU’VE GOT A LOT OF LIVING TO DO; WILL YOU OUTLAST YOUR SAVINGS?
5:49 PM | 
Posted by
pensionfinancialservices |
Science is wonderful – but you’d better prepare for the best so you have the cash to enjoy your life.
According to a recent Fidelity report, an American man who’s reached age 65 in good health has a 50% chance of living 20 more years to age 85, and a 25% chance of living to 92. For a 65-year-old woman, those odds rise to a 50% chance of living to age 88 and a one in four chance of living to 94. The odds that at least one member of a 65-year-old couple will live to 92 are 50% and there’s a 25% chance at least one of them will reach age 97.
Scary? Without a deliberate plan, you could easily outlive your savings, which means relying on Social Security for your income. At this moment, we don’t even know how that will be affected by Congress. It is estimated that only 30% of Americans today have a pension. And the average Social Security benefit is just over $1,000 a month, so how will you survive financially?
Scientific research and financial planning meet at the promising and unprecedented juncture. While science has made it possible to extend people’s lifetimes, most Americans are not accustomed to focusing on the possibility of such a long life. And with the absence of the community family system that was more common before the 1950’s – when families lived together in one town forever and helped each other, this brings about new urgency to consider financial independence for seniors a priority.
One way some folks are preparing for extended lifetime is to turn some retirement savings into a guaranteed stream of income with a fixed income annuity. Another way is for those who are just starting out to consider the retirement “bucket” that must receive funds that will grow over time as important as buying things now, or saving for your children’s colleges. Contact your Pension Parameters Financial Advisor for details.
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