150A Andover Street Suite 2 Danvers, MA 01923

978.777.6554
rcella@ipswichfinancial.com
Client Login
Ipswich Bay Advisors Home
Ipswich Bay Advisors Home
  • Home
  • Home
  • About Us 
    • Our Mission
    • Our Pledge
    • Our Team
    • Our Strategic Partners
    • Ed Slott Master Elite IRA Experts
    • Research-Based Investing
  • Services 
    • Retirement Planning
    • Tax Planning
    • Investment Management
    • Financial Planning
  • 401k Business Services 
    • Advisory and Management Services
    • Employee Education
    • Plan Sponsors
    • Participants
  • Events 
    • Meet Ed Slott Live!
    • Monthly Webinars
  • Resources 
    • State of the Market
    • Newsletters
    • LPL Research
    • Videos
    • Your Personal Retirement Machine
  • Contact Us
Client Login
Estate Read Time: 3 min

Managing the Risk of Outliving Your Money

"What is your greatest retirement fear?"

If you ask some pre-retirees this question, "outliving my money" may be one of the top answers. In fact, 42% of workers say they fear outliving their savings and investments.1

Retirees face greater "longevity risk" today.

The Census Bureau says that Americans typically retire around age 63 for women and 65 for men. Social Security projects that today's 63-year-olds will live into their mid-eighties, on average. This is a mean life expectancy, so while some of these seniors may pass away earlier, others may live past 90 or 100.2,3

If your retirement lasts 20, 30, or even 40 years, how well do you think your retirement savings will hold up? What financial steps could you take in your retirement to try and prevent those savings from eroding? As you think ahead, consider the following possibilities and realities.

How will Social Security work in the future?

For decades, Social Security took in more dollars per year than it paid out. That ongoing surplus - also known as the Social Security Trust Fund – may face funding challenges as early as 2034. Congress may act to address this financing issue before then, but the worry is that future retirees could get slightly less back from Social Security than they put in. It's critical that pre-retirees estimate the amount of Social Security benefits they are expected to generate in the future.4

Preparing for out-of-pocket health care costs.

You can enroll in Medicare at age 65, but how do you handle the premiums for private health insurance if you retire before then? Striving to work until you are eligible for Medicare makes economic sense and so does setting aside money to pay for health care costs. A healthy couple retiring at age 65 can expect to pay nearly $208,000 in lifetime out-of-pocket healthcare expenses, even if they have additional coverage such as Medicare Part D, Medigap, and dental insurance.5

Luck is not a plan, and hope is not a strategy.

Those who are retiring unaware of these factors may risk outliving their money. Creating a strategy may help you better prepare for retirement.

1. TransamericaCenter.org, 2021
2. TheBalance.com, 2021
3. Social Security Administration, 2021
4. Kiplinger.com, 2021
5. HealthView Services, 2021

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Share |

Have A Question About This Topic?

Thank you! Oops!

Related Content

Building Your Legacy

Building Your Legacy

A four-step framework for building a personal legacy.

Tax Freedom Day

Tax Freedom Day

Assess how many days you'll work to pay your federal tax liability.

Are Alternative Investments Right for You?

Are Alternative Investments Right for You?

With alternative investments, it’s critical to sort through the complexity.

Contact

Office: 978.777.6554

Fax: 978.777.6560

150A Andover Street

Suite 2

Danvers, MA 01923

Series 6, 7, 24, 26, 63, 66

rcella@ipswichfinancial.com

Quick Links

  • Retirement
  • Investment
  • Estate
  • Insurance
  • Tax
  • Money
  • Lifestyle
  • All Articles
  • All Videos
  • All Calculators
  • All Presentations

Check the background of your financial professional on FINRA's BrokerCheck.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named representative, broker - dealer, state - or SEC - registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

We take protecting your data and privacy very seriously. As of January 1, 2020 the California Consumer Privacy Act (CCPA) suggests the following link as an extra measure to safeguard your data: Do not sell my personal information.

Copyright 2023 FMG Suite.

Securities and investment advice offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. Ipswich Bay Advisors and LPL Financial are separate entities.  

Ed Slott is not affiliated with LPL Financial and Ipswich Bay Advisors.