Retirement:
Retirement has changed. It is no longer just a few short years spent
fishing or playing golf after retiring from work.
In fact, according to the CDC, if you were 55 in 2003, the men's average
life expectancy is 79 years, and for women, it is 83 years. See
the full CDC life report here.
If you retire at age 65, you may need to fund 20 - 30 years of retirement
life based on your health and lifestyle. At no time in history has
retirement life stretched over this many years.
According to the Wall Street Journal, those over 50 also have great financial
power:
- Today, they control 50% of all U.S. discretionary income, account for 75%
of prescription spending, and have 65% of America's household worth.
- By 2030, they will control 80% of all private investments.
Have YOU prepared ENOUGH for 20 - 30 years? Will what you have
saved last the
way you need it to last? The greatest fear of retirees today is running
out of money.
Different Stages of the Retirement
Life Cycle
Power Boomers - Those between 50 and 70 who lead active, healthy lives.
They may still work, but often they travel, volunteer, exercise, and are
intellectually acute.
Mature Boomers - Those between 65 and 80 who, based on their health
condition, may still be extremely active. They may also choose to travel
less, not work, and spend more time with family.
Frail Seniors - Based often on physical health conditions, these people
are generally more dependent on family, living in assisted care
facilities, and not as socially involved. They may be quite intellectually
active however.
The costs of your lifestyle at each stage will change. The Power Boomer
stage will be more expensive based on the activities you pursue. The Frail
Senior stage may also be more expensive based on health care and care support
needs.
Is YOUR
Retirement Strategic Plan On Track?
Social security won't be enough to fund a comfortable retirement.
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Women and Men in Retirement: The Facts
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| Life expectancy at 65 |
| Men: 17.1 years (live until 82.1) |
Women: 20 years (live until 85) |
| Population 65 and older
living alone |
| Men: 18% |
Women: 38.3% |
| Population 85 and older
living alone |
| Men: 29% |
Women: 57.4% |
| Median number of years
spent in the work force (for workers retired in 2000) |
| Men: 44 |
Women: 32 |
| Average Social Security
monthly benefit when started at 62 |
| Men: $1,051 |
Women: $712 |
| Average Social Security
monthly benefit when started at 65 |
| Men: $1,195 |
Women: $824 |
| Population 65 and older
living below poverty line |
| Men: 7% |
Women: 12% |
Most people have not saved enough. Women will live on average 5 years
longer than men.
In
its 2007 Retirement Confidence Survey, the Employee Benefit Research Institute (EBRI)
found that the majority of women (30%) believe they need under $250,000 for
retirement, while 22% of men believed they needed anywhere from $500,000 to $1
million.
Additionally, nearly half of the women (43%) in a 2006 survey conducted by
EBRI said they had less than $10,000 in savings, which included retirement
accounts such as IRAs and 401(k)s, as compared with 37% of men. See
the complete report here.
Our Help & Professional Resources
The key is to start early and have a solid financial strategic plan. No
matter where you are in your retirement planning, we can help you in the
accumulation stage and even more importantly in the "decumulation" or
"making your money last" stage.
Contact us today for your retirement strategy
review. It is never too late to ensure that you have an approach well suited for
your needs and that it is working.
Online Resources
CNN
Money.com on Retirement Planning
Life Expectancy Calculator
MetLife Mature Market Institute Study of Boomers: Ready to Launch
National Council on Aging
Retirement Living TV
Senior Housing Search Site
Web MD's Healthy Aging Guide
Michigan Office of Services to the Aging
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