You've probably seen news about current actuarial reports projecting increased longevity. For men and women who reach the age of 65, their life expectancy is now over 85 years of age (86.6 for men and 88.8 for women).
This is both good and bad news for Boomers. The good news is we'll live a lot longer past what was once the traditional retirement age of 65. The bad news is some of us could very well run out of money.
That's why you might want to read retirement expert Mark Miller's excellent article in The New York Times, "How to Make Your Money Last as Long as You Do." In it, Miller discusses a number of steps Boomers can take for "mitigating longevity risk," among them:
- Create a budget projection that accounts for non-discretionary expenses
- Recognize when it is wise to begin drawing Social Security benefits
- Consider continuing to work full-time or part-time
- Consider an annuity.
Miller's article includes specific information about each of the above steps. It also includes an interesting table that shows three scenarios for the possibility of a retirement plan failing.
This kind of information is essential for Boomers to consider and digest. It also reinforces the fact that most Boomers would do well to work with a financial advisor who can help plan the best retirement savings and lifestyle strategies so you won't run out of money in your later years.