Question

Money is a concern for just about everyone, even those who are wealthy. As people age, one of the biggest money issue is outliving your money. Given the longer lifespans of the average American - in 2013 is was 76 years for men, 81 years for women - is it realistic to think people can earn enough money in a lifetime to not only support themselves while employed but also support themselves for 10-20 or more years in retirement? Discuss.

Answer 1

Consider the retirement age of an average American be 60 and according to the lifespan estimated around 20 years post retirement are left for the people where they have to rely on their savings for supporting rest of their life. However, for most of the requirements such as health, insurance etc, the government bears the benefit of such issues and they just have to earn for their livelihood. A part of their savings if kept aside for the 30 years of their working life, it would be sufficient for them to support the rest of their life after retirement on the whole. However, the people have to be wise enough in deciding their expenses.