Five ways to help make your money last longer
The good news is that Americans are living longer these days. The average life expectancy has risen steadily from 49 years in 1900 to 79 years in 2018. Congratulations if you live in Hawaii – your state has the highest life expectancy at 81 years according to this report by CDC.1(In the chart, you can see the average for your state.)
There are more than 90,000 centenarians2 (people at least 100 years old) in the U.S. Over 80% of them are women, since women tend to outlive men by about five years. Want to see 100 candles on your birthday cake? Longevity strategies include getting enough sleep, adopting a pet, and making friends. Exercise helps too. Researchers say that even moderate activity for 2.5 hours per week may extend your life by 7 years!3
All of us want to look forward to a long life with confidence. How can we make sure our money will last through our retirement years – especially with life expectancy increasing?
Here are five tips to help your money grow with you:
Start saving now –The U.S. personal savings rate was around 7.3% at the end of 20214. The time value of money is powerful – the sooner you start or increase savings, the faster you can put it to work for you.
Work longer – More older workers are staying employed – some by choice, some by necessity. The longer you have income coming in, the greater your financial resources for retirement.
Get strategic – To maintain your current lifestyle during retirement, you will likely need financial resources worth 10 to 20 times your annual salary. That takes a strategic plan focused on developing retirement income solutions that are practical for you. Getting advice from a financial professional is important.
Maximize Social Security – If you can delay drawing Social Security benefits until age 65, you may increase your monthly benefit significantly.
Get covered – Insurance for medical and long-term care expenses is an important consideration in retirement planning. The average 65-year-old couple with Medicare will likely need $300,000 to cover medical costs in retirement, not including long-term care.5
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2021-130426 Exp. 1/23