Life Expectancy
Get comfortable... you’re going to be here awhile!
It’s a fact: people are living longer − and spending a lot more time in retirement.
So, how many years should you plan for? Well, that all depends on your life expectancy.
Life expectancies are stated as statistical averages, so you could have more or less years than what’s shown on a chart somewhere, in fact, about half of all people outlive their life expectancy. The key is reviewing your lifestyle along with those statistics and being prepared for the changes that will come later in life.
Changing income needs
If you’re like most people, you’re going to need somewhere between 70 and 80 percent of your current income to maintain your present lifestyle in retirement.
While work-related expenses, Social Security and other taxes may decrease in retirement, other expenses may increase.
How you spend your money will likely change over time, too. For example, early in your retirement you may spend more money on traveling and hobbies. During mid-retirement, when the novelty of travel and hobbies has worn off, your expenses may go down as you stay closer to home. In your later years, you may once again see expenses go up as you pay more and more out-of-pocket for health care expenses.
NFW-1533AO
