Retirement Savings Income The Demographic Shift
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Outlook on Life 6

Social Security Benefits

The vexing problem with living off of your savings is that no previous generation has ever had to perform this feat. Previous generations had income from pensions and Social Security throughout the retirement years - any savings were considered a bonus. They didn't have to "live on their savings" alone, so there's really no past model to learn from when it comes to converting savings to income. The question then becomes, how much of your savings should you spend each year? If you spend too much, you may find yourself living on Social Security benefits, which won't buy very much of anything.

Lifestyle Deprivation

Alternatively, if you spend too conservatively, you could deprive yourself of the lifestyle you worked for. Unfortunately, the financial experts we've relied on for so long have been trained in ways to build savings and not on the best means to access them. Therefore, converting your accumulated savings into income that you will not outlive is a challenge that you will need to face. For instance, if you become a grandparent, your financial objectives may change from a simple, guaranteed-income design, to one that will leave some of your wealth for your beneficiaries.

"Retirement Savings Income"
by Ron Meacock © 2017

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