More People Are Afraid of Going Broke Than Dying
Do you want to live to 100?
If you're like the majority of Americans, the answer is yes.
In 2017, the National Center for Health Statistics reported that 65-year-old Americans can expect to live, on average, another 19.4 years, or to about age 84.
That's up from an additional 12.8 years in 1940.
And average life expectancy ages are increasing at a faster pace as medicine and technology improve.
According to a 2019 study by AIG Life & Retirement, 53% of Americans say they want to live to at least 100 years old.
Thanks to modern medicine and science, lifespans are increasing at an unprecedented rate. And the 100-year-plus age bracket is the fastest-growing in the country.
Think about that for a moment...
Right now, the U.S. has an estimated 90,000 centenarians (people over 100).
If the population continues to increase at its current rate, the U.S. will have close to 500,000 people over the age of 100 by 2055.
Some of you reading this will live to 100 — or longer.
That's an incredible prospect. You'll have more time with grandkids... more time to travel the world... more time to read books ... and more time to spend on your hobbies.
But the scary part is paying for it all.
Those longer years will include additional health care bills... food bills... electric bills... insurance bills... and dozens of other bills.
It's never too early or too late to plan for your retirement. The sands of time will continue to slip away, regardless of your actions.
Now, most people are counting on Social Security to bail them out. But if you rely — or will rely — on Social Security for a big portion of your retirement income, pay attention.
According to the AIG survey, only 9% of people say they're "extremely confident" they'll have enough income to last them through retirement. And 51% say they're uncertain their current savings will allow them to go the distance.
In fact, nearly 60% of Americans are more afraid of running out of money in retirement than they are of dying.
And even people who are saving are far behind the curve. According to another study by the U.S. Government Accountability Office, the median amount of savings for households of people aged 65 to 74 is only about $148,000.
If you were to put those savings in an inflation-protected annuity, you'd receive about $650 per month in retirement.
Adding that to the average monthly Social Security payment of about $1,514, you'd have about $2,150 per month in income — barely over $25,000 annually.
"You may delay, but time will not, and lost time is never found again."