Living Well In 1928, U.S. life expectancy was about 57 years.
In 1957, the expectancy grew to roughly 68 years. That's an amazing gain of 11 years of "lifespan" in just 30 years.
Today, that now 65-year-old born in 1957 still has an expected 20 additional years... to the age of 85. One in four will live past 90, and one in 10 will see their 100th birthday.
And as medical advancements continue, that number will increase even more... and even faster. According to the U.S. National Institute on Aging, the number of folks who make it past the age of 100 is expected to grow at a rate of 20 times the total population by 2050.
Most retirement plans assume you'll retire sometime around 65 and live for another 20 years.
But consider this... When this 65-year-old was born, scientists expected him to only live to the age of 68. So right now, this typical retiree is already 17 years "ahead of the curve."
And as medical advancements continue, that number could grow even more... even faster.
What does this mean for you?
Outliving one's retirement savings is the greatest fear of most people nearing retirement age. According to the Employee Benefit Research Institute, 61% of those aged 44 to 75 say running out of money in retirement is their biggest fear.
There's reason for that concern, too. More than half of Americans have less than $10,000 saved for retirement, according to GOBankingRates. And in an article in the New York Times, an economics professor estimated that nearly half of middle-class workers will be "poor or near poor" in retirement, living on a food budget of about $5 per day...
So imagine trying to milk those already sparse savings over 30 or 40 years, especially considering rising prices and inflation.
This is why it's so crucial to estimate your lifespan and make sure you don't run out of money. Consider Social Security strategies, along with products like annuities and solid income-producing investments to provide a full, secure retirement.
But the first step to take is to develop a plan...
Making Sure Your Money Lasts Through Retirement
The retirement landscape has undergone vast changes over the last couple of decades...
As we already mentioned, people are living longer. And previously reliable sources of retirement income – like pension plans – are dying out.
That's where retirement planning comes in. There are three phases of retirement planning:
1. Accumulation – The accumulation phase is the time when you focus on growing your wealth and getting a general idea of how much money you'll need in retirement. You can do this through saving money, investing in the market, buying real estate, etc. It's never too early to start accumulating wealth. As we've said before, compounding is one of the most powerful tools you have to grow your wealth, especially when you've got time on your side.
2. Consolidation – During the consolidation phase, you should zero in on what you'll need to survive retirement... including bills you'll have to pay, income you expect to receive, etc. This is also the point when you switch to more conservative investments in order to preserve your capital. This phase is for people who are within several years of retiring.
3. Distribution – In the final phase, you get to enjoy your hard work in retirement. This is when you begin taking distributions from income sources like Social Security, a pension (if you have one), dividend payments, etc.
Arguably the most important thing to do is to start accumulating wealth. Lots of Americans are relying on Social Security to get them through retirement. But the average monthly Social Security check is only about $1,540.
And what will happen if Social Security goes bankrupt?
That's why you need to have a strategy to help you live your best retirement. And the sooner you can start, the better.
I'm excited to share with you a new venture of mine to help you do just that...
It's the culmination of everything I've ever done. All my education. My more than four decades in the markets. And my 15-year tenure at Stansberry Research with the best overall track record of any analyst.
This announcement is my life's work. My legacy.
It involves the biggest change to American retirement in a century.
And I'm all but certain it's not on your radar today. It has almost nothing to do with inflation... Social Security... the war... U.S. politics... or the brutal downturn in stocks.
On July 19, I'll share all the details and explain why we're headed for what will be the single most important wealth and retirement story of the next 25 years.
What We're Reading...
- Your Social Security check might be smaller than you think.
- Something different: NASA just unveiled the first image from its James Webb Space Telescope.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
July 12, 2022