When it comes to retirement, people usually underestimate how long they will live and overestimate future returns. Life expectancy, which increases every year, depends on a person’s age. This can result in too little savings for a person’s life, especially in an age of medical advancements. Ignoring the probability that you will live longer, only creates more stress and poverty at a time when it matters most. Accordingly, it is important to use more conservative life expectancies when planning for your retirement.
See Henry K. Hebeler, Good News and Bad News: You May End Up Living a Lot Longer than You Expect, Marketwatch, December 12, 2016.
