You Underestimated Your Life Expectancy
Life expectancy is a crucial part of retirement planning. Living longer than the insurance tables predict is a good thing, but if you haven’t made an educated guess about how long you will live and a plan to have enough income to last you beyond that timeframe, then you’re going to have a problem.
If you managed to save enough money to last you for 20 years in retirement but end up living 10 years more than planned, you’ll need to figure out a way to stretch that and most likely diminish your quality of life.
What To Do
To make sure you live the retirement of your choice, Littell recommended using the life expectancy calculator at Livingto100.com. Based on your health and family history, you will be able to estimate your life expectancy and plan accordingly.
To improve the chances that your retirement savings will be enough for you in retirement, you can also try to have more sources of income during your golden years. Diversify your investment portfolio and place a portion of your retirement savings in growth investments, to grow your savings even more.
In addition, Littell recommends adopting a balanced approach by having a source of lifetime income such as an annuity. Also, don’t withdraw more than four percent a year if you want your nest egg to provide for a comfortable retirement life.
