Three Reasons Retirees May Run Out of Money in Retirement…
Some words of encouragement…
It’s totally natural to feel worried about outliving your retirement savings, but it’s important to remember that there are steps you can take to prevent this from happening.
Now, we will be honest with you…
The sad reality is that without a plan (the right plan), running out of money in retirement is a real possibility.
Here are three of the top reasons retirees may outlive their retirement savings:
- They didn’t save enough.
The sad reality is that many people don’t save enough for retirement, and this can lead to them running out of money in later years.
If you want to make sure you have enough money to last, be sure to start saving as early as possible and contribute as much as you can. Our clients typically have saved between $750,000 to $3,000,000.
- They follow strategies like the 4% rule (sustainable withdrawal from investments).
Another reason retirees may outlive their savings is that they follow strategies like the 4% rule. This strategy may not be the best strategy for everyone and there are other strategies to consider. This rule states that you should withdraw 4% of your retirement savings each year in order to make sure it lasts, but if you experience poor returns early in your retirement, this method can quickly fall apart. This method is sometimes referred to as the 3%, 5%, or 6% rule.
- They failed to plan and prepare.
Finally, one of the top reasons retirees outlive their retirement savings is because they failed to properly plan and prepare. If you want to make sure you have a stable retirement income, it’s important to create a plan. Most retirement plans are about saving money. That’s important, but it’s not enough. You’ll also need a strategy that can help you get the most out of your money so you can live life on your own terms and be confident that you won’t run out of resources.
You’ve worked too hard to let your retirement savings run out. Plan and prepare now so you can enjoy a long, happy retirement.
If you want to learn more about how we can help you create a retirement income plan that will last, reach out now.
We’ve dedicated our firm and our professional lives to helping people just like you have a retirement to which they can look forward.
P.S. If you haven’t done so already, complete our FREE Retirement Basecamp™ Mini-Course. It’s a great self-guided way for you to explore creating a plan. Here’s where you can find it.