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How Much Will You Need In Retirement? – Part 2

How Much Will You Need In Retirement? – Part 2

We help our client embrace the importance of managing longevity risks, and the major costs associated with those risks. In our last blog we briefly looked into what food costs might be in retirement.

Most are concerned, and rightfully so, about having enough assets in retirement to cover those costs, let alone leaving an inheritance for their family. An excellent starting point for this is to look into how long people are expected to live in retirement.

Healthy 65 yr old non smoking men and women can expect to live until age 87 and 89 respectively. Yes, women live longer than men. The news gets better from there.

38% of men and 50% of women will live to age 90.

With couples 69% of the time either the husband or wife will live to age 90 and 19% of the time both will live to age 90.

15% of men and 25% of women will live to age 95.

3% of men and 9% of women will live to age 100.

Many people will need some sort of long term care – which can be quite expensive depending on the length of time that type of care is needed. Everyone always thinks it will be someone else but at age 65 seven in 10 people will need long-term care sometime later in life. Women are more likely to need long-term care as they live longer. Medicare will cover some but certainly not all or even a major portion of the cost.

Of course that begets the question “Have you saved enough for retirement?” Perhaps more important, especially for those who are at or near retirement, “What have you done in terms of income planning for your retirement?” and “Have you reviewed your plan recently?” Failure to do so could cause you to be woefully short of funds when you need it the most.

(Source of statistics: Journal of Financial Service Professionals Sept. 2014)

Would you like help determining how much money you’ll need in retirement? Click on the button below to request your free 15-minute phone consultation with a Bayntree financial advisor.

Bayntree Wealth Advisors, located in Phoenix and Scottsdale, Arizona, provides comprehensive financial planning and wealth management. The Bayntree team specializes in all aspects of financial health, including retirement planning, risk management, investment advice, tax strategies, estate planning and insurance.

Bayntree does not provide specific legal or tax advice. Please consult with your tax advisor or legal professional for guidance with your individual situation.

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