Why Many Retirees Are Running Out Of Money

Why Many Retirees Are Running Out Of Money

If you’re nearing retirement, you know how important it is to have a healthy savings. Financial planning preparation throughout life can help ensure a long and happy retirement. Don’t fall victim to the number one mistake many retirees make: underestimating how long they’ll live.

 

It may be that some people are considering their family history, having parents or grandparents that passed too soon. It may be that some don’t understand the average life expectancy figure, which is a sometimes misleading simple average of how long 50-year-olds are expected to live. In reality, some of those 50-year-olds will live just a little while longer, while others may live to see 40 more years. The average life expectancy figure is actually a skewed distribution, with more people living longer than dying early.

 

Plan for a long, happy life when you are saving for retirement. It’s better to leave more to your family or charity than to outlive your assets as a retiree. A rule of thumb for a retirement income stream from your investments is typically limited to 4% of your assets each year. For more questions about retirement planning, contact the trusted financial planners at FCG at (504) 835-1707.
Any opinions are those of Christopher Fuller and not necessarily of Raymond James.