Will You Outlive Your Money?

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Having a comfortable retirement is a big deal, but will you really have enough money? If you end up without proper savings, living off your social security benefits probably won’t give you the lifestyle you’re looking for. Fortunately, there are plans you can make at an earlier age to determine whether you’ll outlive your money. If you see that the money you’re putting aside probably won’t last until you pass away, it may be time to make some changes, so you can have a reasonable level of money coming in for as long as you live. Money that’s left over when you’re gone would go to a person or place you designate.

How Long Will You Live?

How long you’ll live isn’t really a question with an easy answer. Healthcare in the US is getting better, but it’s also getting costly. Some people are choosing to do without needed treatments and medications, so they can save their money for things like paying their electric bill and buying food. In the United States, men live an average of around 75 years, and women live close to 80 years. That’s just an average, though, which means you could pass away sooner than that, or live into your 80s, 90s, or even longer. It’s nice to think you may make it to 100, but that also makes it difficult to determine how much money you should be saving. Despite the concerns with healthcare costs, the biggest fear of baby boomers is actually whether they’ll run out of money before they run out of life.

How’s Your Rate of Return?

One way to consider whether you’ll have enough money or whether you’ll outlive it is to look at your rate of return. When you put money in savings and investments for a later date, what kind of return do you make on it? If you’re not getting much, there may be ways you can move that money to other types of investments that will work better for you. That can mean a higher rate of return and more savings building up, even if you don’t raise the level of money you’re contributing. Nearly 60 percent of baby boomers are worried that they won’t have enough retirement money, and almost 40 percent are concerned about the value of the retirement accounts they have through their workplaces. Costs continue to rise, but stored money doesn’t always grow at a good rate – and that can mean less money than you hoped for when you get ready to retire.

What About Living More Simply?

Another way to keep from outliving your money is to live more simply. A lot of people downsize to a smaller home when they get older, so they spend less on taxes, maintenance, and utility bills. With the price of these things continuing to go up, reducing them as much as possible just makes sense. Nearly half of baby boomers still have debt, too, and that can hurt them in retirement. There are often ways to live on less that don’t require struggling, and exploring some of those options can be a good way to make your money last a lot longer and still really enjoy your retirement years.

At Paradigm Life we can customize a policy to fit your financial situation. Our expert Wealth Strategists are available to answer your questions and show you customized illustrations, outlining an individual plan of action to help you achieve your goals. Request a free virtual consultation, no strings attached.


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