Retirement is a time when people might be able to finally sit back and relax. The years spent working hard and diligently saving have finally come to a halt.
We all dream about how we will spend our golden years – perhaps traveling, pursuing a long-lost hobby, or just relaxing with our loved ones.
But, how long can one enjoy retirement? The answer is it depends, while some individuals may have the opportunity to enjoy retirement for several decades; others may only be able to enjoy retirement for a few years.
In this article, we will explore the question on everyone’s mind – how many years can you enjoy retirement, and what factors should you consider to ensure a happy and financially secure retirement?
Life expectancy
The first factor to consider when planning for your retirement is your life expectancy. According to a recent United Nations projection, the average life expectancy in the United States is 78 years. However, this is just an average, and many factors can influence how long you will live, such as your genetics, lifestyle, and healthcare. Therefore, it is essential to take these factors into account when planning for your retirement.
Retirement savings
The second factor to consider when planning for your retirement is how much you have saved. According to a recent survey by the Employee Benefit Research Institute (EBRI), workers’ overall confidence in their ability to live comfortably in retirement remains steady, while the share who feel very confident continues to increase. 7 in 10 (69%) are confident they will have enough to live comfortably, including 27% who are very confident. Therefore, it is crucial to start saving for retirement as early as possible, so you have enough time to build a sizable nest egg.
Inflation
Another crucial factor to consider when planning for retirement is inflation. While inflation may seem like a small concern, it could have a significant impact on your retirement savings. For instance, if you plan to retire in ten years, and you estimate that you need $50,000 per year to live comfortably, you will need to account for inflation in your calculations. Assuming inflation at 3% per year, you will need approximately $67,000 per year to maintain the same standard of living for ten years.
Retirement goals
One key consideration when thinking about how many years you can enjoy retirement is your retirement goals. For example, if you want to travel the world during your retirement years, you may need to have more substantial retirement savings than someone who prefers to stay closer to home. Therefore, it is essential to consider your goals when planning for retirement, so you can ensure that you have enough money to achieve them.
Social Security and Pensions
Lastly, when considering how many years you can enjoy retirement, it is also important to take into account any social security and pension benefits you may be entitled to. Social security benefits can provide a fixed income during retirement, while pensions provide a guaranteed income for life. Therefore, it is crucial to factor in these benefits when planning your retirement, so you can make sure that you have enough money to live comfortably.
Ultimately, the key to a successful retirement is to take a long-term view, consider all the factors that may affect your retirement years, and work with a trusted financial advisor to create a comprehensive retirement plan that meets your specific needs and goals.
Work with us
Our team of trusted financial advisors is here to support you in planning for a secure and fulfilling retirement. At Kreitler Financial, we work with clients to help them achieve their financial and retirement goals. With a focus on long-term relationships, we are proud to guide clients who have achieved a remarkable level of success.
Don’t miss the chance to schedule a consultation with us and begin your journey towards a prosperous future today!