Retirement & Investment Coaching Services
Knowing What's Around the Bend Can Make For a Smoother Ride in Retirement
The Challenge of Living Longer
Since 1950, life expectancies have increased by more than 10 years, (1) which means you could be preparing for a retirement that lasts 30 years or more. So how long are you going to live? Of course, there's no way to know for sure. But today there's a higher probability that you'll live longer than your parents or grandparents, so you need to plan accordingly to reduce the risk if outliving your retirement savings.
- The first person who will live to 150 is most likely alive today (2)
- The number of 100-year-olds is expected to increase between two and seven times by the year 2020 (3)
- Women tend to outlive men by five to seven years (4)
So, the good news is we're living longer. The challenge is we're not exactly sure how we're going to fund a longer retirement.
Where will the money come from? The answer: You
Thirty years ago, pensions played a major role in retirement planning for many Americans. Today, the number of traditional employer pension plans has decreased from a peak of 112,000 in 1985 to approximately 22,000 in 2015. (5)
With the future of Social Security uncertain and traditional pensions becoming a luxury of the past, more of the burden of funding retirement is falling on individuals. Defined contribution plans, such as 401(k)s and 403(b)s, have become the default vehicles for helping to fund retirement. The downside is, they often leave investors exposed to market volatility without any protection. Working with me as Your Personal Money Coach, my job is to find a solution to this challenge.