How do people outlive their retirement money?
Outliving one's retirement money is not uncommon. Many people outlive their retirement funds and rely on government programs to support them during retirement. Most of those people didn't plan to outlive their retirement money; it just happened. So how does one outlive their retirement money? DesireToRetire.com has collected data from several real life scenarios where people outlived their retirement money and here are some reasons why it happens.
People are living longer
At one time, a 50 year old man planning to retire at 60 was expected to live to 70. However, according to the 2006 Social Security Trustees Report, the average 65 year old man may see 85 and many Americans will live to be centenarians. While this report is not discouraging, it warrants careful consideration. You have to plan for many more years in retirement and not just 10 years.
Lifestyle
- Large homes are expensive. Moving to a smaller one will save you money and give you peace of mind.
- Retirement is not necessarily less expensive. It may seem like it is but it's far from the truth. You'll have more time to enjoy your leisure and that will not cost more money, not less.
- Health can be unpredictable and you'll need to plan for that too.
So, outliving your retirement money can happen and ensuring that you don't outlive it is vitally important. Let DesireToRetire.com be one of your guides in the complex world of retirement planning.
By Kiplinger's Personal Finance Magazine Editors
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There are approximately 76 million baby boomers in the United States. Depending on whose research you review, between 25 and 75 percent of those boomers are either currently supporting, or will be supporting in the future, both a parent and child. Welcome to the Sandwich Generation. Better medical care means Americans are living longer. Combine longevity with the soaring costs of health care, housing, education, retirement, insurance, long-term care, and more, and the result is that many people struggle to get by on salaries or income once thought princely. Some succeed, others don't, and still others thrive in this multigenerational environment. This is a book that can help the reader – no matter their generation or age – prepare for, understand, and financially and emotionally cope with many of the issues that come with being a parent as well as the child of aging parents at the same time.
Budgeting for Retirement
By Jeff Nelson
 Many people think that once they retire budgeting their money is going to be a lot harder, this is a common misconception that can cause a lot of stress during a time when people are supposed to be relaxing. When you are budgeting your money before you retire you are planning for your monetary needs at that time but also for when you retire. Once you retire you are budgeting your money to make sure you have enough money to last you for the rest of your life. If you really analyze the situation, it seems that budgeting your money after retirement is much easier than before.
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