A Harvard study showed one of the biggest fears in retirement is running out of money. Once you are 5 years, or 10 years, or 15 years into retirement, and you get the feeling you are going to run out of money, what can you do? For most going back to work is not an option. Cutting back on your life style and giving up some of your retirement goals are what usually happens. When the feeling of running out of money begins, the carefree retirement ends. In other words when you realize you are running out of money, it is usually too late to do anything about it. This is why planning in advance and putting it in writing is so important.

People are living longer. The risk of running out of money is getting greater. So, how long are you going to live?

The following numbers are based on excellent health at age 65. There is a 50% chance that a male age 65 will live to be 88. A female age 65 has a 50% chance of living to 90. For a couple age 65 there is a 50% chance of both living to age 83 and one of the couple living to age 94.

There is a 25% chance that a male will live to 93, a female to 96, both of a couple to 89, and one of a couple living to 98.

With average health there’s 50% chance of a male living 85. All of the other numbers are reduced by only two years.

Every day there are medical advances and new drugs that are helping extend life. In general we are more health conscious today than in the past. This is also leading to longer life.

Longer life is leading to more people to needing long term care in the last years of their life. This leads to the need for more money.

Planning now for the future allows you to decide now what you will do if you live longer than you expect. You can plan now while you can do something about it. You have the opportunity now to guarantee more of your income for your lifetime, no matter how long you live. Putting your plans in writing provides you a roadmap to follow throughout your retirement. It can keep you from worrying that you will outlive your money and allow you to live a carefree retirement.