Overview
- New analysis cited by Kiplinger reports older adults in 41 states and Washington, D.C., are projected to outlive their money, with an average shortfall of about $115,000.
- Fidelity estimates a 65-year-old retiring in 2025 will need roughly $172,500 for medical expenses over retirement, or about $345,000 for a couple, excluding most long-term care.
- The U.S. Department of Health and Human Services estimates 56% of Americans turning 65 will need long-term care, with Genworth data showing around $77,792 per year for a home health aide and a $111,325 median annual cost for a semi-private nursing home room.
- Inflation and market swings can disrupt standard withdrawal rules, with the S&P 500’s 19.4% drop in 2022 illustrating sequence‑of‑returns risk for new retirees.
- Advisers recommend delaying Social Security up to age 70 for roughly 8% higher annual benefits, extending work or adding part‑time income, securing guaranteed income, using cash buckets for near‑term needs, planning for long‑term care and estate protections, and budgeting for ongoing housing costs such as taxes, insurance, utilities and repairs.