In this article, we will discuss the 25 cities where Social Security goes the farthest for retirees. You may skip our detailed discussion on Longevity Risks in Retirement and see the While there is no single golden number for a retirement nest egg, The Charles Schwab Corporation (NYSE: ) recommends that the generic rule be to retire with 25x your annual withdrawal for the first year. Unfortunately, even such a vast nest egg might prove to be insufficient for those set to retire.
In such a scenario, retirees would be at risk of running out of funds during the latter years of retirement, which can be detrimental to their health and quality of life. According to a poll by Jackson Financial Inc. (NYSE: ), 32% of retirement investors might be underpredicting the duration of their retirement.
Such a huge proportion of individuals are susceptible to this error because most people either do not consider the length of their retirement when planning for it or do not entertain the possibility of living beyond a certain age. Jackson Financial Inc. (NYSE: JXN) reports that over 40% of retirement investors project their life expectancy based on the age of a parent.
Unfortunately, increasing life expectancy means that many retirees could witness over 30 years of retirement, despite having planned for a significantly lower duration. According to Morgan Stanley (NYSE: ), the average retirement in 1970 lasted between 12 and 16 years. Now it’s common for retirements to span 20 years or more a.