Today’s Mission:

Financial demographics and statistics are confusing, but they provide insight into financial planning. Find out what the data says about retirement today.

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(Click the featured times below to jump forward in the episode)

The Briefing:

  • 1:34 – Mailbag: Maria asks whether there are downsides to retiring early. 

Strategy Points:

5:10 – Financial Demographics:  Our Population Is Aging Quickly. 

  • By 2020, folks over the age of 65 will make up more than 20 percent of the population. We’re living longer, but this doesn’t come without challenges. More and more people are withdrawing from Medicare and Social Security. Furthermore, healthcare costs are rising as there is an increased demand for nursing home care. We’re estimating 10,000 Baby Boomers are retiring a day. This means a higher percentage of folks are taking money out of the market rather than investing into it. Longevity is a gift, but it presents us with a unique set of societal problems we’ll have to solve moving forward.

7:11 – Financial Demographics: As You Age, So Does Your Life Expectancy. 

  • A 65 year old male can expect to live until age 83. However, if you make it to 75, your life expectancy jumps to 86. The same is true of females. If you make it to 75 as a woman, you can expect to live until the age of 88. The idea is if you’re healthy, you’re going to live longer. The longer you live, the longer you can expect to live. See our last point; longevity presents unique challenges. It’s impossible to say for sure how long you’ll live, and your life expectancy will shift as you age. Therefore, you must take these factors into consideration as you plan. You don’t want to run out of money before you make your grand exit from this life.

9:19 – Financial Demographics: As You Age, You Might Generate Less Income. 

  • The average income for someone between the ages of 65 and 70 is $42,000, but the average income for folks over the age of 80 is only $20,000. If you haven’t accounted for longevity risk, you could drain your retirement accounts and be left with nothing but Social Security as you age. Remember, income is crucial in retirement. It’s not about the big number on your retirement accounts. It’s about the number you’re planning to live on each month. If you haven’t adequately saved and planned accordingly, you could be eating Spam and Reese’s during your golden years.

Other Objectives:  

  • 13:01 – Where Are You Generating Your Income?

The Grand Plan:

[spp-tweet tweet=”You can’t construct a retirement plan that acts like the end of your life is a fixed point. It’s actually a moving target. – J’Neanne Theus“]


The Spy Kit:

Click the image to get a free retirement rescue toolkit.

More Intel:

The host: J’Neanne TheusContact – Call: (443) 718-6310


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