In 1900, the average life expectancy was 47 years. Today, the average American life expectancy is 77years. By 2040, individuals who reach age 65 will have an average life expectancy of 85 for men and 88 for women, according to the National Center for Health Studies. With people living longer, comes the inevitable worry about how to save enough money for retirement during this long life. You need to design a financial plan suited to your view of your future.
Under current conditions, Social Security funds could fall short of needs by 2042 which means the plans for personal financial security upon retirement are ever growing in importance. You will need to rely on your own personal savings and investments for the majority of your retirement funds.