Saving for Retirement Is Only Half the Job | Opinion
Summary
The opinion article argues that saving for retirement is only part of retirement planning; people also need a plan for turning savings into lasting income. It highlights spending, market risk, health costs, inflation and taxes as factors that can make retirement harder to fund than a savings balance alone suggests.Key Facts
- The Employee Benefit Research Institute’s 2024 survey found that 31 percent of surveyed retirees felt they spent more than they could afford.
- In the same survey, 36 percent of retirees reported unexpected spending needs.
- The article says healthcare, home maintenance, insurance, travel and support for relatives can keep expenses high after work ends.
- It notes that poorly timed withdrawals during early market declines can make savings last for less time.
- The National Center for Health Statistics estimated that a 65-year-old in the United States could expect another 19.7 years of life in 2024; the estimate was 20.8 years for women.
- Fidelity’s 2026 estimate put average healthcare and medical expenses for a person retiring at 65 at $185,500, excluding possible long-term care costs.
- Traditional 401(k) and IRA withdrawals are generally taxable, and required minimum distributions typically begin at age 73 under current federal rules.
- The article says additional withdrawals can affect how Social Security benefits are taxed.
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