Saturday, May 12, 2012
5 BIG RISKS TO YOUR RETIREMENT, PART 2
11:39 AM | 
Posted by
pensionfinancialservices |
The five “rules
of thumb to protect your savings and income” during your retirement reminds us that
life expectancy is longer today than it’s ever been. There’s a very real
possibility that today’s healthy 65-year-olds will live into their 70s, 80s or
even 90s. As a result, retirement planning should consider the fact that health
costs, likely rising all the while, may require income for a considerable
number of years. In other words, as you assess your retirement goals and needs,
expect to live longer.
Statistically
speaking, how much longer? A Fidelity Viewpoints article cites these
numbers: “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 trick
is to live well, and not outlive your savings and rely solely on Social
Security and—for only 30% of Americans—a company pension. The average
benefit, according to a June 2011 “statistical snapshot” by the U.S. Social
Security Administration is just over $1,000 a month, and that amount, in
conjunction with all your other expenses, will likely be insufficient to cover
your health costs.
“In youth
we run into difficulties,” Beverly Sills said. “In old age, difficulties run
into us.” And for many in their retirement years, those difficulties could be
financial ones aligned with potential health costs. The experts at Pension Parameters Financial Services, Inc., can discuss your options, one of them
possibly being a fixed-income annuity.
In the next
post: be prepared for inflation.
Contact us:
Pension Parameters Financial Services, Inc.
28 West 44th Street
New York, NY 10036
Phone: (212) 675-9360 Fax: (212) 675-9363
New York, NY 10036
Phone: (212) 675-9360 Fax: (212) 675-9363
675 Line Road
Aberdeen, NJ 07747
Phone:
(732) 583 -1313 Fax: (732)
583-6991
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