There are two things Americans approaching retirement age should be thinking about: how long they’re likely to live and how much they’ll have to live on.
A recent study by Bankers Life Center for a Secure Retirement (CSR) found that while declining health is the No. 1 longevity concern for middle-income Americans, statistics suggest they ought to be taking more steps to avoid outliving their money.
Long Life Expectancy
Consider these facts from the Social Security Administration: The average 65-year-old has a life expectancy of 19 more years. One out of every four will live past age 90 and one in 10, past 95.
The CSR study, Longevity Risk and Reward for Middle-Income Americans, asked people ages 55 to 75 how they plan to deal with shortfalls in retirement income. Their replies:
• Reduce spending (63 percent)
• Get a part-time job in retirement (41 percent)
• Sell my house (25 percent)
• Give less money to children/ grandchildren (24 percent)
• Don’t plan to do anything (15 percent).
To increase your chances of a good quality of life in your golden years, consider these five steps:
1. Know your full retirement age.
2. Work as long as you are able.
3. Delay Social Security benefits as long as you can.
4. Practice healthy living. Eat right, stay fit and see your doctor regularly.
5. Consider speaking to a professional retirement adviser. Social Security was never meant to be your sole source of retirement income. North American Precis Syndicate