The simple answer is “as long as your retirement lasts.” But of course, it’s not actually simple at all, because there’s no way to know how long you’ll live. That makes planning for retirement more difficult — and more important than ever.
Life Expectancies Continue to Increase
Many people are likely to live longer than they think they will. Life expectancies have increased in just the last six years, and are likely to continue to increase. And don’t forget, these numbers are just averages, so many people will live longer.
Many Retirees Worry Their Money Won’t Last
According to the United States Census Bureau, the fastest-growing segment of the population is people over 80.
So if you retire at age 65, it’s quite possible your retirement could last more than 30 years.
With retirement lasting longer, it’s not surprising that 37% of current retirees worry about outliving their money.2 You and your spouse may wonder if you will have enough money to maintain a certain standard of living and still have money to pay the bills.
How Can Americans Make Their Savings Last for Decades?
Experts say that saving as much as you can for as long as you can is one way to stay on course. Using tax-advantaged plans like IRAs and Roth IRAs will help your savings grow faster.
When preparing for a potentially long retirement, you may rely on money from many income sources like CDs, IRAs, savings accounts, Social Security, pensions (if you’re lucky enough to have one) and investments that generate income.
To supplement these retirement income sources, many financial experts recommend converting a portion of your savings into a fixed immediate annuity. This type of annuity is safe, simple and pays a set amount of money every month for the rest of your life — no matter how long your retirement lasts.
Maintaining your standard of living and ensuring your savings lasts a lifetime are challenges you may face in retirement. A fixed immediate annuity may bring some extra peace of mind by providing a guaranteed income stream for as long as your retirement lasts.
If you’re curious to see what your actual current life expectancy is, go to:
Learn more about annuities in the New York Life Learning Center, or call 1-800-313-6841 to have your questions answered by a knowledgeable representative.