Also in this playlist...
This transcript is automatically generated
Americans are living longer than ever about longer -- for greater demand on retirement accounts just 10% of eligible Americans are contributing to individual retirement accounts.
This is according to the Employee Benefit Research Institute.
We hear you tell -- how to save more for a longer life is doctor sandy Timmerman from the mature market institute for -- life good morning sandy thanks for -- good morning nice to be here are still.
Give -- some of those calming -- or mistakes that we all -- in terms of planning for our retirement.
Whether you're on the -- or you have twenty years to go.
What do we not too.
And what should we be doing.
Well we've got to think about that 86 you know so many people don't know much about how much retirement -- -- they're going to need how much they're going to save.
And we've done some studies.
Showing that people for example don't know how much money they can withdraw from their pre from their retirement savings once they retire.
And I think if we go to financial planners find out a little bit more about the basics we are off to a good start but there's some more specific -- we can talk about.
Okay let's talk about some of those tips in terms of how to walk yourself -- -- knowing some of the things like the health care risks.
How much longer might you live vs your planned expectation and the money you're putting in retirement for that what are some things that you can do.
To kind of prepare yourself of that situation.
Well first of all people in our living potentially 200.
And the fastest growing population group is the people 85 -- over.
So if you think about retiring at sixty you could be living forty years in retirement because we don't know when we're gonna -- course.
So one of the things we need to do is start when we're moving into the return to transition is to stop thinking only about accumulating money.
But how you're going to spread that money out to last a lifetime and have a steady stream of income.
So that would be one way to look at how things now.
The other thing is to think about working longer many of us think we can retired 5560.
Better to wait a little bit longer because you're eligible for Medicare at 65.
And paying for health care costs can be very expensive.
Also delaying Social Security payments might be a really good thing for some people to do.
Because every year that you -- -- your payments.
You really add another seven per cent to your.
Retirement Social Security benefits that's it that's -- core rate.
Point -- my mom and I talk about that has my parents are at that baby boomer retirements and I area and and then can't retire yet but let me ask you asked what about.
The sort of the cost of living issue because when you're working you're living a different lifestyle than when you're retired and you probably prefer to make sure you can live that same lifestyle in retirement and it may not be possible.
But how do you plan for that -- -- just your lifestyle and what you used to living every day for 65 years.
You know five years after the fact when you realize you know what I'm seventeen now and I I didn't really plan this correctly.
Well actually people think they can live on a lot less now MetLife did a study asking people.
Our question which was what kind of pre retirement money would -- need to replace when you retire.
And the rule of thumb is about eighty to 90%.
But forty or 50%.
Under estimated that -- so we think we gonna live a lot cheaper but the truth is it's a little bit difficult to do that.
So some things to think about would be your your home equity.
You could move to a cheaper location -- downside is.
You could think about things like reverse mortgages for some people that is suitable which in -- -- to stay in your home.
And you really have to think about your expenses I think people don't go for financial planners as much as they -- Many people think that they wouldn't be done or it's not suitable but a planner really could make a difference -- just help you lay out.
What you're gonna need to replace your employee benefits.
Had a stretch that money how to get some tools that will help you have a guaranteed income.
Well doctor -- Timmerman it was a great pleasure you brought up some very important and valid points and I'm missing my mom today we'll talk about it -- thanks so much nice to be here.
Filter by section