Today, one in four people who reach age 65 will live past 90, according to the Social Security Administration. One in 10 will past 95. Do you know how much income you will need if you retire at 65 and live to be 80, 85, 90 or 95?
Despite the fact that retirement could last 20 or 30 years (or, nearly as long as one’s working years), a survey by the Federal Reserve in August 2014 found that 31 percent of Americans currently have no money saved for retirement and are not receiving a pension. According to the Bureau of Labor Statistics, nearly one in five Americans age 65 and over continue to work and the majority of these people are working full-time. Some choose to continue working in order to stay active and engaged, but others feel compelled to work because their nest egg isn’t big enough to support them in retirement.
As you get older, your income will likely become less predictable. Your age may also limit your ability to perform certain jobs or your opportunities to learn new skills. What standard of living do you hope to maintain in retirement? Will you be able to keep up with the rising costs of health care? What if a chronic medical condition or other unforeseen circumstance prevents you from working till age 65? How much is enough to secure your financial future?
With so many variables to consider, it’s never too early to begin thinking about and planning for your retirement. Whether you are starting your first job, starting a family, trying a new career path or getting ready to retire, having a plan to achieve your short- and long-term financial goals is a smart investment in your future.
MetLife has conducted extensive research on the costs of aging and retirement, and this research has helped us to innovate and create better services and solutions that enable people to effectively address their retirement futures. Quality financial services, including life insurance, disability income insurance, annuities and individual retirement accounts (IRAs), can help people enjoy income security in older age.
Making a smooth transition from work to retirement and beyond begins with thoughtful planning. Whether you’re just starting to plan for retirement or re-evaluating your existing retirement plan, four simple steps can help you develop a retirement strategy that meets your needs. You can also use the MetLife Retirement Toolbox to evaluate, calculate and assess your retirement needs.