It’s no secret—and certainly no surprise—that the average life expectancy in the United States has been steadily rising for well over a century now. With advances in modern medicine and a greater consciousness of nutrition and fitness, the average American is living in to his or her late seventies. It’s not uncommon for people to now regularly reach 90 and older.
Longer life means a longer retirement, and so retirement planning requires new ways of thinking. Someone planning to retire at the age of 65 could realistically be looking at needing 20 years or more of income. Most people are now looking at retiring later than they had originally planned, which both extends their earning and saving potential as well as shortens the retirement period. Most working Americans also expect to continue working in some capacity after retirement, to supplement their retirement income. Many retirees will decide to pare down their lifestyle, as well, to stretch their nest egg.
This new reality means that devising an investment strategy that can support your retirement planning goals is more important than ever. Getting a head start on saving and investing can go a long way to avoiding these retirement pitfalls and securing your financial future.