It’s one thing to say you want to live forever. It’s quite another thing to have the financial means to do so.
Americans are living longer than ever these days, with the average life expectancy now 78.6 years, two years higher than it was in 1998.
It is not out of the question that you will live to be 100—the number of centenarians has shot up by 66 percent over the past three decades. While you may be thinking that’s great news, you should also be aware that this longer lifespan would necessitate adjustments in your retirement planning.
Most people retire around age 65. Imagine having to live 35 more years on the retirement savings you accrue to that age. Sound impossible? Here are a few adjustments you can make to ensure you stay comfortable if you hit triple digits.
What to Do in Your 20s and 30s
Paying off high-interest loans, maxing out your contributions to your work-sponsored 401K and eliminating unnecessary purchases can help set you up for the long term. Cut out extras like that daily barista-prepped coffee. Ensure you get the most out of your work retirement savings by upping your contribution if you have an employer who will match it.
These small changes will help you save more in the short term, but they also get you used to making small sacrifices for those long-term benefits. Can you put 15 or 20 percent of your income toward retirement rather than just 10 percent? Do it.
What to Do in Your 40s and 50s
Sock away a nest egg that can carry you through any unexpected emergencies or life events, such as losing a job or a serious illness. Use this to cover expenses so you don’t have to dig into your retirement account for funds.
Look into long-term care insurance. This policy can offset the expensive costs of care for chronic diseases and disabilities. The longer you live, the more likely you are to develop these conditions. Talk to a financial advisor about other adjustments you should be making.
What to Do in Your 60s
You may be well into your 60s before you retire. Discuss with your financial advisor the best age to start receiving Social Security benefits, and start downsizing by doing things such as trading in an expensive car.
If you can, try to put off retirement for as long as possible. Look into semi-retirement, with a gradual pulling back on work hours. The longer you wait, the longer it will be until you dip into your retirement funds.
Not sure how to put these tips into action? Contact Go Comprehensive to discuss your retirement planning options. We want your golden years to be as enjoyable as possible, too.