How Long Will My Retirement Savings Last?
For our Retired Participants
Why is your life expectancy crucial to calculating your spending in retirement? It's no secret that people are living longer and longer these days. And that's fantastic, but it can present a challenge when planning your retirement spending. 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 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. This will give you a general life expectancy calculated by your date of birth and gender, as well as life expectancies at future dates. More importantly, however, you should factor in your personal health habits (nutrition, exercise, stress management) as they play the largest role in keeping you healthy and promoting longevity. In addition, think about the longevity of your immediate relatives.
Bringing it all together
Be holistic and realistic when you’re calculating your longevity. Use that information 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. If you need help calculating or setting up your distributions, please contact us! The various ways to contact the DCP are listed on the back of this newsletter.