It’s no secret that people are living longer and longer these days. And that’s fantastic, except when it comes to planning your retirement. It means you have to be that much more disciplined about getting your financial house in order; otherwise you may outlive your money.
Just how long will you live?
With so many things to factor into planning your retirement, calculating longevity can become one of the things that often falls between the cracks. But it’s one of the most crucial factors in accurately calculating how much money you’ll need to last you for the long haul.?? A good place to start is the Social Security Administration’s Life Expectancy Calculator (opens new window).1 This will give you a life expectancy calculated by your date of birth and gender, as well as life expectancies at future dates. In addition, think about the longevity of your immediate relatives. Did your grandmother live to be 102? Did your older sibling pass away from an illness? Are your parents fit and sharp in their 70s and 80s?
It’s also important to factor in your lifestyle. Do you spend your time painting or rock climbing? Would you rather practice yoga or go bungee jumping? Think about whether the activities you enjoy are risky or not.?
Last but not least, consider your own health. Factor in any medical conditions you may have, but don’t forget about things like flexibility, balance, muscle strength and mental agility. All of these things will give you a complete picture of your overall health.
Bringing it all together
Be holistic and realistic when you’re calculating your longevity. Use that information and your planned retirement age to figure out how many years you can expect to live in retirement. This will help you calculate how much you will need each month?so you can enjoy retirement to the fullest - while helping to ensure that your money will go the distance with you.?
This material is provided for general and educational purposes only; it is not intended to provide legal, tax or investment advice.? All investments are subject to risk.? We recommend that you consult an independent legal or financial advisor for specific advice about your individual situation.
The information herein is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.?
Securities offered through Voya Financial Advisors, Inc. member SIPC.
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