The Savage Truth on Money, 3rd Edition

CHAPTER 13The Savage Truth On Getting To—And Through—RetirementTime to Withdraw

The time to start thinking about retirement planning is well before retirement, when you have time on your side and the flexibility to adjust your investments, your lifestyle, and your expectations to meet the reality of living longer. Every day for the next 20 years, 10,000 Americans a day will turn 65. As the 76 million members of the baby boom generation face this new stage of life, they have created a new definition of retirement—one that is likely to include the need for continuing employment, even on a part-time or entrepreneurial basis. It’s the start of a trend that will be passed on to younger generations.

Today’s retirees will live much longer than their parents and grandparents, who could sensibly retire at age 65 and expect to live for only a few years. Now, at least one member of a 65-year-old couple can expect to live for another 23 years, to age 88. And there is a 30 percent chance that one of them will reach at least age 92, according to Social Security. At their website, www.SSA.gov or www.SocialSecurity.gov, you can access their life expectancy calculator.

The reality of longer lives has a huge impact on retirement planning. On the plus side, it gives us more years to work and save up for retirement. And with new hips, knees, and heart valves, not to mention other medical advances, many seniors are capable of and challenged by the idea of continuing to work. Thirty years on a golf ...