People are living longer, which can complicate retirement planning, according to Northwestern Mutual. With longevity on the rise, individual retirement planning needs to include asset accumulation and savings, as well as strategies for managing the personal and financial risks that can arise when you live into your 80s or 90s.
According to the U.S. Census Bureau, there were 720,000 people aged 90 or older in the U.S. in 1980. In 2010, that number increased to 1.9 million. By 2050, that number is expected to be 9 million people.
“Imagine you stop working right now, in 2011, and you must go on to support yourself until 2036. How would you meet your needs, your wants and also handle the unexpected through another 25 years of life?” asked Rebekah Barsch, Northwestern Mutual vice president – market strategy. “When you retire, this hypothetical question becomes very real, and it is only by developing a holistic retirement plan now, and incrementally and consistently working toward achieving that plan, that you can enter a financially secure retirement.”
Northwestern advises its clients to factor longevity into their retirement plans.
“Understanding longevity and the other risks of retirement can be empowering. The good news is that a well-developed retirement income plan can help you weather the unexpected. The key is to start planning now,” said Barsch. “Work with a trusted advisor to align your expectations with your lifestyle and build a plan that will take you through retirement, not just to retirement.”
The Northwestern Mutual Life Insurance Company is based in Milwaukee, Wis., and has $1.2 trillion of life insurance protection in force.