Will your retirement savings be adequate?

How to manage your longevity risk.

Gail Bebee 8 December, 2016 | 6:00PM
Facebook Twitter LinkedIn

Editor's note: This is part two of a two-part series on retirement finances.

In part one of this series, I explained how to develop a retirement budget and determine the retirement income you can expect from guaranteed sources such as government pensions. However, for many people this guaranteed income will be insufficient. Drawing on savings to bridge the income shortfall is the customary solution to this quandary, and the focus of today's article.

How much do you need to save to fund your retirement-income gap? The answer depends on your assumptions about such factors as future spending, inflation and interest rates before and after retirement, your risk tolerance and the rates of return on your savings. Testing various assumptions and calculators to see how long your money should last will help you set a realistic retirement-savings target.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free
Facebook Twitter LinkedIn

About Author

Gail Bebee

Gail Bebee  Gail Bebee is an independent personal finance speaker, teacher and the author of No Hype--The Straight Goods on Investing Your Money. She can be reached at gbebee@gailbebee.com; her website is www.gailbebee.com.

© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies