Do you have longevity in your family? I don’t but my wife does. Though I am getting closer to beating the age of my closest male relative, every day.
Yet as lifespans lengthen, wages are not keeping up with inflation, and even a decent nest egg may not go far enough. That’s especially true as employers have shifted the burden of retirement savings to employees, offering 401(k)s rather than pensions that promise a certain benefit every month. As a result, millions of Americans are going to have to keep working longer. “The issue more than anything is the high cost of living,” says Mandeville, the Council on Aging director. “It’s really strained people’s retirement budgets.”
In the past I recommend that clients who have longevity prospects, to consider trimming their spending to assist in extending their cash reserves for as long as possible.