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The average life expectancy in the U.S. is higher than ever, and while that is great news, there is a potential downside: Retirees today need to plan on having their money last for much longer.
A recent Bankrate survey found that 70% of Americans plan to work for as long as possible, with many saying it’s because they’ll need the money. That plan may or may not work out. But if you worry about running out of money after you retire, financial experts have some answers for you.
Several academic studies address strategies for retirement planning. For instance:
- One recommends that you add more of a stock component to your portfolio after retirement, contrary to conventional thinking.
- Another suggests you could focus on saving steadily, rather than concentrating on how much money you should accumulate.
- Yet another study involves a dynamic approach — adjusting up or down the rate at which you should withdraw money from your portfolio every year in retirement.
Want to avoid running out of money in retirement? Read on to see what the academics and financial industry experts have to say.