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August 29, 2007 at 08:16 AM
People on the verge of retirement underestimate the length of their retirement years considerably–along with how long their savings will need to last, according to a new study.
Pre-retirees believe they will need to make their retirement savings last until an average of age 83, according to a report on the study, conducted by Fidelity Investment Research, part of Fidelity Investments, Boston.
The problem is that a healthy 65 year-old man has a 24% chance of living to at least 90 and a healthy woman a 35% chance of reaching that same age, according to estimates cited in the study.
The report, “Structuring Income for Retirement,” found that 53% of preretirees are concerned about outliving their savings, yet 61% admit that they have not made a formal calculation of how much they can afford to spend each month in retirement to prevent that from happening.
