The assumption that, because you have your mortgage paid off, travel less, buy less, and live a less active lifestyle, you I’ll spend less when you retire is not true at all.
According to an article on MarketWatch, “living to 100? That will be $3.5m,” the average money spent by age 50 is $1.5million and the average spent between 50 to 81- the average life expectancy- is $1.4million. plan on living to 190? That will cost an additional $630.000, for a total of $2.3 million in the last half of your life, that’s nearly a million more the first 50 years. Life is not less expensive in retirement, even if you’re tying to live flugallt. It’s more expensive.
And also as market watch reports, starting in your 70s, your healthcare cost will rise 30% on average, reaching $48,400 (with $8,100 in prescription costs on top of that). If you make it to 80, your health insurance costs end up being 57% higher, and in your 90s you might need assisted living, which comes in at a whooping $89,000.
Okay. Now the question is why would life get more expensive even as the costs is expected to get down? You I’ll spend different you don’t spend less. The fun goes down the healthcare goes up.
And the worst news is most Americans can’t retire, because there are many who don’t have enough money to retire, “the medium family of retirement age has $12,000 in savings. That is a terrifying figure for a country where social security, the state pension pays out a maximum of roughly $2,500 a mouth, and pensions for both public and private employees are underfunded.”
Saving for investing
Since saving in our traditional 401(k) has been proving faulty, then saving for investing can be a sure way to retire rich, because investing either in business or real estate can guarantee higher returns, and you can have full control over it.