According to the U.S. Centers for Disease Control and Prevention, life expectancy in the United States has mostly increased from year to year. In fact, the life expectancy was 76.3 years for men and 81.4 years for women in 2019, a significant increase from 1990, when life expectancy was 71.8 years for men and 78.8 years for women.
With people generally living longer these days, many San Jose retirees are concerned that the money they put aside for retirement could run out before they pass away. Fortunately, there are ways to plan for the future to ensure that you have enough to maintain your current lifestyle and prepare for the possibility of a longer life. Experts suggest the following strategies to avoid running out of money in retirement:
- Keep taxes to a minimum
- Continuously accumulate money for retirement
- Prepare for long term medical and care costs
- Reduce your expenses
What happens if I do run out of money?
If you do run out of money in retirement, that does not typically mean that you have no money at all. Social Security and other income streams will likely still provide you with some cash on a regular basis. However, depending on Social Security alone is not feasible for most people. You may have to secure part-time work, cut costs, and/or rely on governmental programs for support.
The best way to avoid running out of money during retirement in the first place is to plan for the future. An estate planning attorney can help ensure you have enough put away to make it through your retirement years, even if you live longer than you expected.