Being able to take advantage of the opportunities retirement may
hold requires more planning than ever, for several reasons.
- Longer retirements. People are simply
living longer, which makes for longer retirements. That’s
compounded by the fact that people are also retiring earlier.
1940: 11% of life spent in retirement
Retirement Age: 69.1
Avg. Life Expectancy: 77.6
2000:
20% of life spent in retirement
Retirement Age: 65
Avg. Life Expectancy: 80.9
|
|
Source: "Income of the Aged Chartbook, 1998", June,
2000 Edition, U.S. Dept. of Health and Human Services.
Average life expectancy from Bureau of the Census based
on male age 65. Retirement age from Social Security
Administration.
|
- Inflation. Steady inflation ensures that
you can expect to pay more for everything in retirement –
from gas to groceries to vacations.
| |
1980 |
2003 |
| 1st Class Postage Stamp |
$0.15 |
$0.37 |
| Loaf of Bread |
$0.51 |
$0.96 |
| Average Automobile |
$11,100 |
$26,150 |
| Average Existing Single Family Home |
$65,075 |
$164,500 |
| |
| 2003 Figures Sources: U.S. Postal Service, Consumer Price Index,
American Automobile Manufacturers Association, and National Association of Realtors. |
- Less support from other sources. Traditional
sources of retirement income – like social security and pensions
– now make up less than half of retirement income, and they
will continue to dwindle in years to come, according to most experts.
|
Retirement
Income Sources
|
|
|
*Includes
private pensions and annuities, government employee pensions,
Railroad retirement, and IRA, Keogh, and 401(k) payments.
Source: Income of the Population 55 or Older, Social Security Administration |
Next
|
|
