Most people assume they will retire at a certain age, but it turns out many retire earlier than expected because of job loss or illness. The flip side is retiring too early when they could have remained working. Social Security benefits increase 8% every year a person delays retiring. Taking early distributions, such as changing a job, is a mistake that can trigger penalties and set back the long-term growth of assets. People forget to account for medical expenses – out-of-pocket expenses for people in retirement have jumped 50% the past decade. Retirees don’t convert savings to a reliable income stream that can cover fixed expenses for life. Drawing down retirement savings too rapidly is obviously a problem. Withdrawals of 4% of savings starting at age 65 will provide income to age 95. American’s underestimate their longevity. Mid-80s is average, high 90s is very possible. 

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