The fastest-growing age group is now the “100-plus.” Their numbers have tripled in the last 20 years, jumping from 37,000 in 1990 to more than 96,000. The Census Bureau estimates that by 2040, American centenarians will number 580,000. Many of us are now blessed with this longevity. Retirement no longer just means a beach home in Florida and a pension for a few years until you die. People in good health can live into their 90s or beyond. For Americans in this group, retirement could last as long as their careers or maybe even longer.
Thanks to technology and improved healthcare, Americans are also blessed with a better quality of life during these retirement years. Retirees are traveling internationally, running marathons, doing volunteer work and enjoying a whole host of new activities.
But longevity has a price. Today’s retirees must now consider the possibility of running out of money. Many people often think of investment decisions when it comes to retirement planning, but the most critical decision is actually when to stop working. The timing of when you stop depositing paychecks and start tapping into retirement funds can make a big impact. Not to say that investment decisions aren’t important; a solid portfolio should be built to reflect your individual risk tolerance AND your stage in life. But good financial planning can help position retirees to better weather the storms of market volatility.