Retirement Risk #1: Not Understanding Risk
“Retirement” is a relatively new concept. Not so long ago, leisure-filled, post-employment days simply did not exist. Shortly after the founding of the United States, one could expect to live to the ripe old age of 35. People worked their entire lives.
When Congress passed the Social Security Act in 1935, life expectancy had risen to a robust 61 years. Interestingly, the “retirement age” for full benefits was set at 65 years, four years beyond life expectancy. Today, “retirement” in some form is widely expected, and for many, a persistent cause for concern. With current life expectancies, retirement can easily stretch into a person’s 90s. Employees are working to fund a goal that may be decades away, and could span decades, in a rapidly changing and uncertain environment.
The risks are many. We begin with four.
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