In a recent study most people greatly underestimate how long they will live. There is a slight relationship between how long people thought they would live and how long they actually lived-but the most unusual finding was that people do not seem to fully understand the longevity risk they face.
These days with people and the media obsessing over the risks of dying from transportation crashes, cancer, terrorist attacks, and Ebola the more prevalent risk that more people are facing is the risk of longevity and ultimately outliving their retirement savings.
The risk of running out of money can be mitigated by having a plan early and being proactive. I'm not telling you to be a penny pincher. Rather take the time to review your financial situation with your advisor and talk about how you want to live your life in retirement. That exercise will deliver peace of mind because you will be in control.
There are many things in life we cannot plan for but mapping out your financial future is a proactive choice. Experiencing peace of mind for you and your family and mitigating the risk of longevity is priceless.
Caroline Hill, Financial Advisor
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).