Simple Truths About Money
7. The longer you live, the more money you will need.
You plan to retire at age 65 and based on longevity in your family figure
that you will live to age 85 years old. You also estimate you can live on
$80,000 per year. Assuming inflation averages 3.5% in retirement and
your after tax return is 8% you will need $1,646,272 by age 65.
If you live until you are age 90 you will need to save $2,071,938 and
to age 95, $2,503,398.
With advances in medical research and healthcare it is likely that
longevity will increase. You need to plan for this.
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