Retirement Today Today’s retirees face a variety of factors unique to this generation.
Living Longer We are living longer. A retiree turning 65-years old today is expected to fund more than two decades of retirement. And, that’s just the average. 1
1 in 4: 65-year-old men live to 93 1 in 4: 65-year-old women live to 96 1 in 4: 65-year-old married couples one will live to 98 65-year-old married couple: 14% chance one will live to 100
Market Risk The reality is that most people planning to retire in the near future will be impacted by a bear market.
Historically, the average time between bear markets is 3.6 years. 2
Withdrawal Rate Risk The future value of investor assets, such as stocks, mutual funds and even bonds are not guaranteed. If a withdrawal is taken while the market is down, it will take an increase in value much greater than the decrease for the portfolio to recover.
141%
133%
100%
78%
72%
Percent gain required over three years while taking income from the original investment
50%
42% 46%
25%
0% 4% 5%
0% 4% 5%
0% 4% 5%
% of Loss Withdrawal Rate
20%
33%
50%
Example shown for illustrative purposes only and does not reflect any specific investment.
3
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