In theory the workers home should be paid off by

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benefit calculations if the employer offers a DB plan. In theory, the worker's home should be paid off by their late 50s and this would then translate into additional savings potential during those final years of employment. The other issue that is sometimes overlooked is medical insurance coverage. The worker has been accustomed to an employer providing coverage. Medicare is not available until normal
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retirement age, so early retirement can also create an issue of where medical coverage will come from at a time when coverage may be most needed. Q: You are having lunch with a co-worker who has recently graduated from college. This individual has lots of ambition but is starting with an entry-level job. You are talking about retirement because another co-worker just had their retirement party earlier the same day. This young co-worker tells you that their goal is to retire (based solely upon their own efforts) at age 62. What would you tell them about this one piece of information? A: You should tell them that their retirement age expectation will likely go up the longer they work. You could also tell them that their goal of 62 will be most achievable if they save 15% or more of their annual gross salary. Life Expectancy Assumptions The Centers for Disease Control (CDC) studied life expectancy in 2011. When creating a financial plan, you will make certain assumptions and these assumptions need to be updated periodically. Life expectancy is most realistic when considered just before retirement (at age 65). In the charts above, you can see that the average life expectancy for men is 82.7 and the average for women is 85.3. In both genders, Hispanics tend to outlive us all and Caucasians are next in line given the data tracked by the CDC.
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The interactive map of the United States uses data from the Measures of America project for 2013- 2014 (Links to an external site.)Links to an external site. . You can use the filters on the right to explore the data by gender and race/ethnicity. Clearly, those who live in the North appear to live longer lives than those in the South. The reasons for this are irrelevant to this discussion. The salient point is that the state of residency will help to direct a planner to selecting a life expectancy figure to be used in the retirement planning process. If someone wants to move from Oregon to retire in Alabama, tell them to look out. Although Alabama is a very fun state!
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The two graphs above are for a married couple named Eric and Joy. These come from a neat calculator called the Actuaries Longevity Illustrator (Links to an external site.)Links to an external site. . If you follow this link, you can answer a series of very broad questions and calculate your (or a client's) very generic estimate for longevity. In this case, there is about a 73% chance that Eric will last until age 80 and an 81% chance that Joy will reach the same threshold. Perhaps more importantly, the second graph shows that there is a 75% chance that either Eric or Joy will make it 47 years past the point of completing this illustration (that would be age 89 for Eric and 91 for Joy...hypothetically of course).
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