Expenses in retirement

30 Years is a Long Time!

Thirty years is a long time!  It’s a lot longer than the span of time between the year my parents had their first glimpse of me and the year I had children of my own.  It’s longer than the time between the year I married and the year my oldest child was married. How much my life and needs have changed over that span of time, and how much more they'll change over 30 years!
I'm a homeowner, so in 30 years a I would need:
  • At least one new roof, perhaps two.

Rethink Your Retirement Income


Many retirees can live well on less than what the financial-planning industry tells them. Here's how to look beyond the formulas.

Expensive illnesses, long-term care and extreme longevity can suddenly throw retirees' estimated income needs out of whack. When the Society of Actuaries interviewed middle-class retirees in focus groups earlier this year, "they were managing very carefully, adjusting their spending where they needed to and trying not to draw down" their savings, Ms. Levering says. "But they were not planning for shock events."

Are you saving too much? Here's how to look beyond the formulas.


The only hard-and-fast rule for how much retirement income you will need is that there is no hard-and-fast rule. The financial industry's typical rule of thumb—which states that retirees need to save enough to be able to replace 75% to 85% of their preretirement income every year after they stop working—isn't really useful for many people. New research shows that many retirees can live well on less than that but others rack up higher expenses through travel, expensive hobbies or medical costs that can't be avoided.

Five Retirement Myths That Could Cost You

Tom Lauricella

Many people, as they approach retirement, think they have it all figured out. They should think again.

Misplaced confidence is common throughout life, but retirement is something else: People spend years—sometimes decades—planning for it. For many, there is a calendar with a date in the future on which they plan to punch out of work for the last time. Budgets are crafted, portfolio returns compounded and dreams take shape for how the money—and time—will be spent.

Retirees and Near Retirees Have Different Retirement Expectations

Financial Advisor
Karen DeMasters

Most pre-retirees think they will have enough money to maintain their lifestyle when they retire, but most retirees have found that they don't, according to an ING U.S. survey, Retirement Income Redefined.

More than half (51 percent) of the pre-retirees expect to have enough money to maintain their lifestyle, while only 36 percent of retirees say they have enough to maintain the same lifestyle as they did during their working years.


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