VIDEO: The Greatest Risk All Retirees Face

 

Do you realize you could spend as many years in retirement as you did in your working years? Actually, according to the Society of Actuaries, as of 2017, the life expectancy for a 65-year-old man is 85.8 years, and 87.8 years for a 65-year-old woman. Further, the mortality tables illustrate that one in four 65-year-old men can expect to live until age 93, while one in four 65-year-old women can expect to reach age 96. Just let that sink in for a moment. Good news right? Absolutely! However, generally speaking, people aren’t adequately prepared for a long retirement, and without proper planning, they can easily outlive the money they’ve saved. The risk of this happening is often referred to as LONGEVITY RISK. Longevity risk can be defined as the extent to which an individual’s life span significantly exceeds his or her life expectancy. This is the risk of living longer than expected, and outliving your income and retirement plan.

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