Preparing for the Long Retirement: Strategies for Boomers to Plan for 30+ Years of Retirement

Introduction: The average number of years spent in retirement continues to rise, and many boomers are not planning for the possibility of a long retirement. According to the TIAA Institute's "Retired for How Long?" report, most boomers (57%) plan to retire between ages 60 and 69 and nearly half (46%) believe they will live to age 90 or older. This means a significant portion of boomers will spend 30-plus years in retirement, yet only 9% are planning to spend that long in retirement. Not planning for the possibility of a long retirement can lead to financial ruin.

Why Planning for a Long Retirement is Important:

1. You Can Run Out of Money: The biggest risk that comes along with not planning for longevity is running out of money in retirement and not having a way to replenish it. As Kourtney Gibson, CEO of TIAA Retirement Solutions, explains, "Underestimating the number of years you will live in retirement is like planning a cross-country road trip with only half a tank of gas in the car. If you do not have enough gas, you will run out before you arrive at your destination." The same applies to retirement planning; if your planning horizon is too short, you will not have enough savings to last the duration of your retirement.
2. Longevity Is a Big Risk: Many Americans consider the risks of mental decline, market swings, and inflation when planning for retirement, but don't put longevity risk on the same level. However, it's one of the biggest risks to retirement security. Longevity risk is one of four risks that threaten retirement security, and it's probably the easiest risk to offset with proper planning.
3. It's Always Better to Be Overprepared: When it comes to retirement planning, being overprepared is always better than being underprepared. Research shows life expectancy has increased by 17 years since the debut of Social Security nearly 90 years ago. People are living longer, and longer lifespans mean they need retirement income to last as long as they do. The road to retirement security must include strategies that provide income for the span of our retirement, whether that is 20 years, 30 years or more.

How Boomers Can Prepare for a 30+ Year Retirement:

1. Begin with the End in Mind: Set goals for what you want your entire retirement to look like. Think about how you want to spend your time, not just in the early years of your retirement, but 20 years into it and beyond. Create a savings strategy that supports your dreams. The earlier you begin the process, the more time your money has to grow, but there is still value in maximizing retirement plan contributions and taking advantage of your company's match, even in the ninth inning.
2. Add a Source of Guaranteed Income: Products like annuities can help ensure you have a source of income throughout your retired life. For those closest to retirement age like baby boomers, preparing for retirement may feel like a race against the clock—but you still have time to protect your future. Adding a source of guaranteed lifetime income to your retirement planning strategy protects your future by providing income that cannot be outlived. By converting your retirement savings into an annuity with guaranteed payments, you are creating an additional source of income that will last all through your golden years.
3. Get Expert Advice: Planning