Americans tend to be working longer these days.
You are planning for retirement.
Your goal is to retire at a decent age and live a long life enjoying the fruits of your labor.
Is this accurate?
According to a recent Think Advisor article titled “Americans Are Retiring Later, Dying Sooner and Sicker in Between,” this may be a bit more challenging than you may realize.
So, what is the reality?
Recent data shows more Americans are dying.
The mortality rate has increased 1.2 percent from 2014 to 2015.
Why is this a big deal?
The rate has not increased by more than one percent since 1980.
Life expectancy is not necessarily shorter, but people are waiting longer to retire.
This is partially due because the claim age for full Social Security benefits is increasing.
While waiting to retire can be financially beneficial, it also means you may have fewer years to enjoy retirement than did your predecessors.
More bad news?
Working longer makes it more likely you will experience significant illness during the end of your career and during retirement.
The trends shows the average health of Americans is decreasing.
This could be due to several causes, including obesity, suicide, overdoses, and alcohol abuse.
Regardless, this trend will benefit pension plan providers who only pay during the lifetime of a pensioner.
The reality?
In the end, the length of your life (and mine) is unpredictable.
After all, it is awfully hard to fool the gene pool.
As my grandfather used to say, "the old must die and the young may die."
Be prepared.
Get your estate planning and retirement planning ducks in a row without delay, if you have not already.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
Reference: Think Advisor (October 23, 2017) “Americans Are Retiring Later, Dying Sooner and Sicker in Between”
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