Since you definitely don’t want to run out of cash too soon and, being that there’s a 25% chance of living until 90 (no matter who you are), it’s a good idea to bet on being retired for at least 25 years if you quit working at 65.
Moreover, does retirement age affect life expectancy?
When they looked at the sample of 2,956 people who had begun participating in the study in 1992 and retired by 2010, the researchers found that the majority had retired around age 65. But a statistical analysis showed that when people retired at age 66 instead, their mortality rates dropped by 11%.
Similarly one may ask, what life expectancy is Social Security based on?
According to data compiled by the Social Security Administration: A man reaching age 65 today can expect to live, on average, until age 83. A woman turning age 65 today can expect to live, on average, until age 85. About one out of every four 65-year-olds today will live past age 90.
How much does average person need to retire?
With that in mind, you should expect to need about 80% of your pre-retirement income to cover your cost of living in retirement. In other words, if you make $100,000 now, you’ll need about $80,000 per year (in today’s dollars) after you retire, according to this principle.