You Live Too Long
My parents are in their late 80s and in reasonably good health. They’ve far outlived their parents. With good planning and careful spending, they have enough money to live comfortably. For some boomers like me who are hand-wringing over retirement, that may not be the case; living a long life may actually be a financial liability.
“The good news is that people are living longer than ever before, so it’s widely recommended you plan for at least a 30-year retirement,” says Schwab-Pomerantz. More good news: Americans are starting to get down with that. Most workers polled by Transamerica said they expect to live to age 90, up from age 86 a year earlier.
But are they saving enough? The survey found that the average household had socked away $71,000 for retirement. That amount is up slightly from a year earlier, but alone it’s not enough to fund three decades of retirement. Social Security benefits will help, as will a pension if you have one. Downsizing your home and retiring in a cheaper state can help, too, as can locking in additional income for life from a deferred income annuity or qualified longevity annuity contract (QLAC).