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This increased life expectancy has made saving for retirement more of a challenge.
Keep reading as we discuss somesigns that you might not be able to afford to live past 90.
The prices for goods and services in the U.S. typically rise about 3% annually.
That means things will cost more over time, and you gotta plan for it.
Taxes can significantly reduce your retirement income.
This means the withdrawal will need to cover your living expenses and the taxes owed.
Given the state of the housing market in recent years, lets not forget property taxes.
They could increase rapidly in response to price appreciation, and you suddenly have alarger property tax bill.
These taxes could drastically cut into your savings.
Saving in a combination of taxable, tax-deferred, and tax-free accounts can help you have choices for later.
Accumulating new debt during retirement, however, will be much more difficult.
Credit card or personal loan debt should be a warning sign of trouble to come.
You Are Living an Unsustainable Lifestyle
Retirement is a time to enjoy yourself without having to work.
Be sure not to spend more than you could afford and cut back on unnecessary spending.
Your Retirement Savings Doesnt Account for Large Unexpected Expenses
Unexpected expenses are going to happen.
Thats why most professionals recommend having an emergency fund.
It will allow you to cover those unexpected expenses.
You must also account for unexpected expenses when planning how much money youll need for retirement.
The longer you wait to start receiving Social Security, the larger your monthly benefit will be.
If you wait until 68, you will receive 108% of your social security benefits.
This increases by 8% each year until the age of 70.
The Bottom Line
Its difficult to plan how much money to save for retirement.
There are many factors to consider, including how long you will live.
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