While people planning for retirement or who have already taken that step may think they’ve got their futures pretty well taken care of, a new study by Morningstar Investment Management finds that investors frequently underestimate the number of years they likely have left and may fail to plan accordingly, according to an article published by BenefitsPro.
While a number of variables, such as gender, income, household health and smoking status, factor into how long someone is likely to live, the detailed study, titled “Estimating ‘The End’ of Retirement,” finds that even those who feel they’ll be around for 20 or 30 years after retirement may be underestimating their own longevity — and thus not funding their golden years appropriately.
The study finds that individuals would benefit by adding an extra five years to their expected lifespan, while couples — who must take into account that one partner may well survive the other — should plan for an extra eight years. Read the full article.