For most Americans, it is no. Baby Boomers—the largest and wealthiest generation—are facing serious retirement challenges.
Even if you saved for retirement, you may outlive your savings. Just glance in the obituaries to see that Americans are living longer.
The Social Security Administration reports that one in four adults age 65 will live past 90.
Most retirement programs were not designed to last that long. Also, you and your spouse both may need assisted living or long-term care.
U.S. monetary policies are another reason why your money may not last. The goal of bringing interest rates near zero was to stimulate economy after the crisis of 2008.
But the consequences of this action have been devastating to conservative investors and retirees on fixed income. It also forces middle-class Americans to reconsider how they will live when they retire, if they can retire at all!
So you have a dilemma: you planned to retire on 5-7%, but it is expected that your portfolio will show only a 2-3% average return for the next 10 years.
Do you know what you will need in retirement?
While longevity, inflation, healthcare needs, and future economic bumps make projecting difficult, at Fleet Wealth Management, we can help.
You need to be honest. Do you expect to make up for lost time? Do you plan to travel? The costs of medical care, assisted living, or a nursing facility - do you know what they are?
You cannot underestimate anything, so no guessing.
Put more of your income asideDelay your retirementGet additional income
Prepare for inflationDelay filing for Social SecurityInclude healthcare in your retirement planning
Retiring the 4% Rule