Personal Finance:Simple Calculations to Assist You in Retirement Planning
Two primary ingredients to a happy retirement are having sufficient income and having that income stream extend long enough to see you and your spouse through your latter years.
The world is changing very rapidly. Now, people over 65 represent the fastest growing segment of the population (see Figure 1). Note that the leading edge of the baby boomers (born between 1946 and 1964) are now 55 — the traditional age for early retirement. By 2005 the average life expectancy will rise to 86 for women and 76 for men. While life is invariably a fatal disease, life expectancies are increasing and your retirement planing should reflect the increases.
In Plato’s Republic, an old man is told by a younger friend, “I rather suspect that people generally think old age sits lightly upon your shoulders, not because of your cheerful disposition, but because you are rich.” Surely, wealth can be a great comforter during retirement. In addition to enjoying good health, two primary ingredients to a happy retirement are having sufficient income and having that income stream extend long enough to see you and your spouse through your latter years.