Technically, if you’re collecting Social Security and are lucky enough to also be collecting a pension in retirement, technically you won’t be running out of money in your retirement. Those benefits are guaranteed to your death. So, let’s put that first scare tactic to bed, shall we? What the financial advisors are scaring us about is running out of our savings in retirement. That’s quite a difference. If you’re able to make it on your Social Security monthly benefit plus/and/or a pension, you will probably fare somewhat well in your retirement years.
DH and I have been meeting with our estate-planning attorney/financial advisor and we ran our current financial holdings. We have a paid-for home, no car loans, no credit card debt and a smallish RV, low-interest loan. Based on our savings, investments, assets, equity, Social Security and pension income and our low expenses (estimated $3100 per month in two years when we officially fully retire) we will have a cumulative lifetime income of $1,242,597 which potentially will last us for 24 years.
Technically, we may have a potential shortfall year in 2043. I would be 93 years of age but unfortunately, the program projects I’ll be dead at 90 years of age. That means my money will outlast me by three years. Since DH is younger than I am, he’ll experience a savings shortfall when he is 86 years old. He’s estimated to perish in 2047 at 90 years of age also. DH will be living, according to the financial calculations, without a savings account for 4 years. By then, both of us might be living in a Medicaid-sponsored nursing facility or with our children. But then again, DH and I do very nicely living solely on our Social Security and pension benefits so I don’t see our final days being anything like what a computer generates.
My dad died at 92, still living in his home with a $600 a week caregiver. He only went into a medical facility the last 3 weeks of his life. My mother died young at 59 due to a rare, incurable cancer. DH’s father died in his mid-eighties, also having the same heart conditions DH has currently. His mom, however, is 89 going on 90 and in tip top shape.
Since no one can project when they will die, despite computer-generated analysis, longevity in retirement is a crap shoot. You aim for the moon and hope for the stars. If DH and I die on time, we won’t run out of savings in our retirement. If we live longer, hopefully our kids will pick up the slack. If not, it’s off to a Medicaid-sponsored facility. Geeze, I hope they at least visit us from time to time.
When we are born in to this world, there is much fanfare and celebrations. Our parents have parties and baby showers and gender-identity parties. They hand out cigars and get pats on their backs. There’s food and wine and merriment. When we are ready to leave this very same world we were born into there is pain and health issues and biased age discrimination and misery. I have often wondered why our life span must be so. Why do we come in like a bang and go out like a whimper? Shouldn’t we celebrate the fact that we are alive till our very last day on this planet? The masses might not but I plan to.
I plan to party and celebrate to my last dying breadth.
Live well, my friend. And prosper. Live well and prosper.