Recent studies and surveys show that pre-retirees and retirees fear these five threats to their retirement finances most – and with good reason. Which of these keep you up at night?
Retirement Security Threat #1: Outliving Your Money
This is such a big and scary threat that some people say they would rather die before their time than run out of money.
Unfortunately, the likelihood of outliving your money is all too real. The average 65-year-old will outlive their savings by almost a decade, according to a recent study by the World Economic Forum.
To determine how much money you’ll need to have saved by the time you retire, a good guideline is the “Rule of 25,” which says you should multiply your total annual expenses by 25. By that measure, to have $100,000 per year (don’t forget to adjust for inflation) to spend in retirement, you’ll need to save $2.5 million.
It’s also important to consider that you may well live longer than you imagine, and studies show people tend to underestimate their life expectancy.
Retirement Security Threat #2: Market Risk
[Read more…] “The 5 Biggest Threats to Your Retirement Security Today”