Stretch Those Assets!

Will your retirement nest egg last as long as you need it to? That question keeps pre-retirees and retirees awake at night. This show is designed to help them put the question to rest by offering a range of suggestions for how to extend the life of one’s retirement assets so they’re positioned to last a lifetime and even beyond. Those suggestions include positioning nest egg assets for growth, balancing that upside growth potential with protection through diversification, insurance and the like, and managing things like retirement plan assets, Social Security and pension plan benefits. The tools to extend the life of a retirement nest egg are out there. It’s just a matter of knowing how and when to use them.

Sources:

Social Security Administration. Calculators: Life Expectancy
  • About one out of every four 65-year-olds in the U.S. today will live past age 90, and one out of 10 will live past age 95.
“17th Annual Transamerica Retirement Survey.”
  • In a recent survey, 51 percent of working people named “outliving their savings/investments” their number one retirement fear.
Older Americans Are More Afraid of Running Out of Money Than Death
  • An Allianz study of more than 3,000 baby boomers indicated 60% were more afraid of outliving their savings than actually dying.
  • An American Institute of CPAs survey said 57% of financial planners listed running out of money as their clients’ primary retirement concern.
“The 2016 Retirement Confidence Survey: Worker Confidence Stable, Retiree Confidence Continues to Increase.”
  • The percentage of workers who say they are “very confident” about having enough money for a comfortable retirement stands at 21 percent. Nineteen percent say they’re “not at all confident.”
“2016 Retirement Preparedness Survey Findings.”
  • 54 percent of pre-retirees have no idea how much they will need to set aside for retirement. Another 24 percent estimate they’ll need a nest egg of at least $1 million.
“The Retirement Savings Crisis: Is It Worse Than We Think?”
  • About 38 million working-age households (45 percent) have no retirement account assets whatsoever.
“2016 Retirement Health Care Costs Data Report.”
  • According to one recent estimate, a healthy 65-year-old couple retiring in 2016 will, on average, pay about $377,000 in lifetime out-of-pocket retirement health care expenses. That’s all after age 65. A couple age 55 today retiring in 10 years, at age 65, would pay a total of $466,000 in health care expenses from age 65, on. And guess what? Health care expenses are expected to rise by an average of more than 5 percent per year, far exceeding inflation.
“Long Term U.S. Inflation.”
  • In 2016, the inflation rate in the US was 2.1 percent, so the rate is inching closer to the 3 percent it has averaged over the long haul. And at that rate, prices will double every 20 years or so.
The Social Security Claiming Guide
  • One analysis indicates that by delaying benefits from age 62 to the full retirement age of 66, a person can generate 33 percent more in monthly Social Security income. By waiting until age 70 to take benefits, they can reap a 76 percent jump in Social Security income. For example, a person who would get a benefit of $1,000 a month at age 62 would get at least $1,333 at age 66 and $1,760 at age 70.