{"id":30172,"date":"2022-02-14T09:13:00","date_gmt":"2022-02-14T14:13:00","guid":{"rendered":"https:\/\/wealthica.com\/blog\/?p=30172"},"modified":"2022-02-16T11:40:41","modified_gmt":"2022-02-16T16:40:41","slug":"outliving-your-retirement-fund","status":"publish","type":"post","link":"https:\/\/wealthica.com\/blog\/outliving-your-retirement-fund\/","title":{"rendered":"How to Avoid Outliving your Retirement Fund"},"content":{"rendered":"\n

One of the things that you need to do while planning for retirement is determining how long you expect your retirement to last.<\/p>\n\n\n\n

True, that\u2019s easier said than done; predicting how long you will live as a retiree is not just dreadful, but also very easy to get wrong. What if you end up living longer than your retirement fund lasts?<\/strong><\/p>\n\n\n\n

You clearly cannot afford to get this wrong. You might end up with no money at a very old age or have to live with less than you expected as time goes on.<\/strong> Both scenarios are more dreadful than predicting when you will die.<\/p>\n\n\n\n

But what are you supposed to do about that? Well, let\u2019s see\u2026<\/p>\n\n\n\n

Why Life Expectancy Tables Don\u2019t Work<\/h2>\n\n\n\n

Many financial advisors rely on life expectancy tables to create your retirement plan.<\/p>\n\n\n\n

For example, the average Canadian lives to 82<\/a>, so assuming that you will live that much and not longer makes sense. Or does it?<\/p>\n\n\n\n

You see, you may not be the average Canadian. Are you ready to risk your retirement life on that assumption?<\/strong>
<\/strong><\/p>\n\n\n\n

Assuming your life span based on statistical probability is very risky when there are so many parameters that will influence how long you live.
<\/p>\n\n\n\n

So, counting on life expectancy tables is out of the question\u2026<\/p>\n\n\n\n

What to Do Instead<\/h2>\n\n\n\n

Here are two alternatives:<\/p>\n\n\n\n