Lifespans today are longer than they used to be, which means you may need more savings to last throughout retirement. While holding a job is certainly one solution for providing income later in life, it assumes one’s health is good enough to continue working.
Unfortunately, that may not be the case as younger baby boomers start to retire. A recent study found pre-retirees in their late 50s tend to have more health concerns and limitations than older retirees did at that age. On average, this group has higher rates of cognitive issues related to memory and processing thoughts, and a higher percentage of boomers have at least one limitation associated with performing an activity of daily living (eating, bathing, dressing, toileting, mobility and continence).1
Those forced to retire earlier than they want because of health issues may encounter more complications if they haven’t reached the age to qualify for Social Security benefits. While an earlier generation could receive full benefits at age 65, people born in 1960 and later must wait until age 67. The scenario could worsen for millions of future retirees if the full retirement age for Social Security benefits is increased even higher.2
The medical and educational advances that have extended our average life expectancy are a blessing for retirees. However, it’s important to remember at the individual retirement planning level that living longer doesn’t necessarily mean living healthier.
1 Lois A. Bowers. McKnight’s Senior Living. Oct. 6, 2017. “Future residents may be sicker than current ones, study suggests.” http://www.mcknightsseniorliving.com/news/future-residents-may-be-sicker-than-current-ones-study-suggests/article/698529/. Accessed Oct. 13, 2017.