Several studies have shown that Americans in general are not saving enough for retirement. One such survey, published in March 2016, found that around one-third of people have no retirement savings, which puts them in an extremely vulnerable position. Even among those who do manage to save for retirement, there are two common errors that affect whether they will have enough put away to see them through retirement.
- Underestimating your life expectancy. A 1992 study questioned thousands of people in their fifties, asking if they believed they would reach the age of 75. Over half of those who expected to die before then were in fact alive on their 75th birthday. Life expectancy keeps going up and many people will live for several decades after retiring.
- Overestimate how long you will be working. This can sway people into spending now with the intention of saving at some point in the future. Unfortunately, many people may not be able to work as long as they'd like. Voya Financial conducted a study in 2015, which identified that 60 percent of workers were forced into retirement earlier than intended.
To plan properly for retirement, it's crucial to take into account your life expectancy and the length of your career.
Let the free MoneyTips Retirement Planner help you calculate when you can retire without jeopardizing your lifestyle.
Photo ©Depositphotos.com/ByLove (Miss Sateerat Saiket)