• Question
  • Out living my resources

    Asked by a 80 year old woman from East Falmouth, MA on 6/12/2012

    Statistically what are my chances of out living my resources

  • Categories: Retirement Planning, Out of Money


  • Editorial 


    San Francisco, CA

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  • Well.... to answer your question directly: generally speaking the odds are VERY high that you will run out of money in retirement!

    However, we hope that you found more specific information -- personalized for you -- in the NewRetirement Retirement Calculator:

    ---> https://www.newretirement.com/retirement-calculator/default.aspx

    You should have found out when you personally might run out of money! Did you review both the pessimistic and optimistic assumptions in the calculator?

    Generally speaking, research indicates that the MAJORITY of households are actually running out of money for retirement!!!

    A recent study from the Center for Retirement Research at Boston College ( http://crr.bc.edu/wp-content/uploads/2012/06/IB_12-11-508.pdf ) found that:
    --- Seventy four percent of all households who retire at age 62 fall short of having adequate assets for retirement.
    -- Delaying retirement to age 67 dramatically reduces this figure to 47 percent.

    Other Sobering Statistics on Running Out of Money in Retirement:

    ---- > Data show that many workers nearing retirement age have saved nowhere near the amount they need, and many have very little savings. More than half of all workers, 56%, say they have less than $25,000 in savings, according to a survey by the Employee Benefit Research Institute.

    ---- > Longevity will be a big factor in how many people run out of money in retirement.... Americans are living longer. The National Center for Health Statistics estimates the current average United States life expectancy exceeds 78 years. That means many people will see their 80s and 90s.

    ---- > A poll from Allianz Life Insurance of people ages 44 to 75 found that more than three in five (61 percent) said they fear depleting their assets more than they fear dying.

    Of course there are many things you can do to protect yourself from outliving your resources. You can get a personalized list in the "Improvements" section of the NewRetirement Retirement Calculator:

  • Login to rate this answer:   Answered on 6/12/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.