Life expectancy

Planning for Life Expectancy

One of the confusing things about planning for retirement is trying to figure out how long it will last. It's as if I was crouched at the start of a race without any idea how long the race will be. If it's going to be short, maybe I should sprint for it and not worry too much about running out of energy. But if it's going to be a marathon I'll want to nurse my resources and watch them carefully so I don't run out too soon. But getting some idea how long the race will be means figuring out my life expectancy.

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.

When Should I Take Social Security?

I can start collecting Social Security Benefits any time from age 62 to 70. The earlier I take them, the less my benefit will be, so there is some strategy to deciding when to pull the trigger. I want to figure out the ideal time to do it, and I'm also curious how much money I would have had to save up to provide the same stream of income that Social Security will provide. So I did a little calculating to see how much difference it makes.

Americans Clueless About Life Expectancy, Bungling Retirement Planning

Forbes
Ashlea Ebeling

Financial planning to age 120: Society of Actuaries says Americans need to plan for living longer. The Society of Actuaries found that more than half of Americans underestimate their life expectancy, and that their financial planning time horizons are too short. Once folks get the notion that half of people will outlive the average life expectancy of their age group they need to revisit their financial planning time horizon. The Society found that retirees’ horizons are not long enough for adequate retirement planning.

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