# Everlasting Retirement: Are You Ready For It?

This week, let’s focus on life expectancy and what a long life costs.

I know I have quoted some of these numbers before, but they are worth repeating.

[ad#Google Adsense 336×280-IA]If a man in this country makes it to 65 in good health, he has a 50% chance of living to 85 and a 25% chance of living to 92.

A woman at 65 in good health is looking at the same probabilities, but to 88 and 94 years of age, respectively.

And at least one member of a 65-year-old couple has a 50% chance of living to 92.

That means if, like most people, you take an early retirement at 62, you have to fund 27 years of retirement for at least one of you.

What did it cost you to make it (total cost) from age 35 to 62? Yes, I know you had the kids to raise, but subtract the kids and think about how much money it has cost you to make it the last 27 years.

Then consider that the Bureau of Economic Analysis reported the average consumer currently saves one-half to one-third as much as they need to fund their retirement.

Most should be deferring 10% to 15% of their annual income, but they are actually saving 5%.

So, at best, most Americans will have saved less than one-half of what they will need to pay for 20 to 30 years of retirement.

Bu, then you have to work into the equation the fact that all of us will face failing health as we age, and costs for that have increased 25% in just the last five years.

The average 65-year-old retired couple can expect \$220,000 in healthcare costs.

And inflation: 30 years ago, the median income was around \$22,000. According to the Bureau of Labor Statistics, median income these days is about \$48,000.

And the saddest of all the retirement numbers comes from the Employee Benefits Research Institute: People between the ages of 55 and 64 have an average of only \$69,127 saved.