"Longevity risk means I have to start eating worse so my lifespan matches my retirement savings."
Longevity Risk Planning
Most people worry about whether they've saved enough to retire. But there's another question that's just as important:
How long will your retirement savings need to last? A retirement that begins in your 60s could potentially span 20, 30, or more years. While a long life is something to celebrate, it also creates a unique financial challenge—the possibility of outliving your retirement resources. At Taylor Retirement Solutions, we help individuals and families prepare for longevity as part of a comprehensive retirement strategy.
What Is Longevity Risk?
Longevity risk is the financial risk associated with living longer than your retirement plan is prepared to support.
No one knows exactly how long they'll live, which makes planning difficult. If you underestimate the length of your retirement, you may spend or withdraw assets too quickly. On the other hand, being overly cautious because you're afraid of running out of money could prevent you from fully enjoying the retirement you've worked hard to achieve. The goal is to find an appropriate balance.
Turning Your Savings Into Long-Term Retirement Income
During your working years, the financial goal is often accumulation: saving and investing for the future.
Retirement changes the equation. Now you need to determine how those assets can help support your lifestyle without knowing exactly how many years you'll need them.
A longevity-focused retirement strategy may consider several areas of your financial life, including:
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Social Security
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Retirement account withdrawals
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Investments
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Pensions
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Annuities and other potential income sources
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Healthcare expenses
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Inflation
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Taxes
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Insurance
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Legacy and estate goals
The objective isn't to predict your lifespan. It's to build a financial strategy that considers the possibility of a long retirement.
How Much Can You Safely Spend in Retirement?
This is one of the most important—and personal—retirement questions.
A withdrawal strategy that works for one retiree may not be appropriate for another.
Your spending needs, age, assets, investment allocation, income sources, market conditions, tax situation, and long-term goals can all influence how much you withdraw and where that money comes from.
Rather than choosing an arbitrary percentage, Taylor Retirement Solutions can help you develop an income strategy based on your actual financial picture.
Plan for a Retirement That Could Last Decades
You can't predict exactly how long your retirement will last. But you can plan with longevity in mind.
Taylor Retirement Solutions can help you develop a strategy designed to balance the income you need today with the financial resources you may need tomorrow.
