Funding 40 Years of Retirement
If you live to 100, can you avoid outliving your money?

Will you live to 100? Your odds of becoming a centenarian may be improving. Earlier this year, the Centers for Disease Control reported that the population of Americans aged 100 or older rose 44% between 2000 and 2014. The Pew Research Center says that the world had more than four times as many centenarians in 2015 as it did in 1990.
If you do live to 100, will your money last as long as you do? These financial steps may help you maintain your retirement savings and income.
Keep investing in equities. Standard & Poor's 500-stock index does not automatically gain 10% or more each year, but it certainly has the potential to do so. As the benchmark interest rate is still well below 1%, fixed-rate investments are not producing anything close to double-digit returns. Some fixed-rate vehicles are even failing to keep up with the current inflation rate (about 1.5%). Turning away from equity investments in retirement may seriously hinder the growth of your savings and your level of income. What’s the right mix? Some research has shown that a portfolio constructed of between 50% and 75% in equities, coupled with a reasonable withdrawal rate, gives your portfolio a solid chance of success.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Arrange some kind of pension-like income. If you can retire with a pension, great; if not, you may want other income streams besides Social Security and distributions from investment accounts. Renting out some property may provide it; although, the cost of third-party management can cut into your revenue. Dividends can function like a passive income stream, albeit a highly variable one. An annuity, of course, is built precisely for this purpose and annuitizing (arranging for a guaranteed stream of income) a portion of your investable assets is absolutely worth considering and will make great sense in the right circumstances.
Hold off filing for Social Security. If you are in reasonably good health and think you may live into your 90s or beyond then retiring later and claiming Social Security later can be a wise decision. If you wait to claim your benefits at full retirement age (which ranges from 66 to 67, depending on your birthdate), you will have fewer years of retirement to fund than if you left work at 62 and claimed benefits immediately. By continuing to work, you are also allowing your retirement savings a few more years to potentially grow – this might be the wisest step of all.
Funding 35 or 40 years of retirement will be a major financial challenge. The earlier you plan and invest to meet that challenge, the better.
Greg O'Donnell's mission over the course of three decades has been to guide people to pursue and maintain a healthy financial life plan that accomplishes their goals.
Investment advice offered through O’Donnell Financial Services, LLC, a registered investment advisor. Securities offered through Independent Financial Group, LLC member FINRA/SIPC. Advisory assets may be custodied at TD Ameritrade. Insurance offered by Gregory C. O’Donnell, California Insurance #0B87978. Mortgage services are provided through American Pacific Mortgage Corporation licensed through the California Bureau of Real Estate #01215943 NMLS #1850. Gregory C. O’Donnell licensed by the California Bureau of Real Estate #00971579, NMLS #298004, not all applicants will qualify, rates subject to change. Know before you owe. Insurance offered by Gregory C. O’Donnell, California Insurance #0B87978. O’Donnell Financial Group, Inc. and O’Donnell Financial Services, LLC are not affiliated with Independent Financial Group, TD Ameritrade or American Pacific Mortgage Corporation.
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Greg O'Donnell is the CEO and founder of O'Donnell Financial Group (www.ODonnellFinancialGroup.com). His mission over the course of three decades has been to guide people to pursue and maintain a healthy financial life plan that accomplishes their goals.
-
What’s the New 2026 Estate Tax Exemption Amount?
Estate Tax The IRS just increased the exemption as we enter into a promising tax year for estates and inheritances.
-
The Economy on a Knife's Edge
The Letter GDP is growing, but employers have all but stopped hiring as they watch how the trade war plays out.
-
Financial Fact vs Fiction: The Truth About Social Security Entitlement (and Reverse Mortgages' Bad Rap)
Despite the 'entitlement' moniker, Social Security and Medicare are both benefits that workers earn. And reverse mortgages can be a strategic tool for certain people. Plus, we're setting the record straight on three other myths.
-
Medicare Open Enrollment: Why You Need to Pay Extra Attention to Part D, From a Financial Adviser
The lowest premium for prescription drug coverage might not actually save you the most money. Make sure you take copays into consideration and do the math.
-
Five Retirement Planning Traps You Can't Afford to Fall Into, From a Wealth Adviser
To help ensure you reach your savings goals and enjoy financial security in your golden years, be aware of these common pitfalls. The key is to be proactive, informed and flexible.
-
Your 401(k) Can Now Include Alternative Assets, But Should It? A Financial Adviser Weighs In
Many employer-sponsored plans offer limited investment options, which can stunt growth. But participants considering alternatives might need some sound advice to get the most from their accounts.
-
Will Taxes Shred Your 401(k) or IRA During Your Retirement? It's Very Likely
Conventional wisdom dictates that you save in a 401(k) now and pay taxes later, but turning that rule on its head could leave you far better off. A financial planner explains why.
-
More Retirees Are Renting: Should You? A Financial Adviser Weighs In
In some ways, renting is cheaper, more flexible and easier, but unless you understand the implications for your taxes and health costs, it might not be for you.
-
Where There's a Will, There's a Way Your Assets Will Be Distributed as You Wish
Your will is the backbone of a strong, adaptable estate plan that ensures what you leave behind goes to your selected beneficiaries. Without a will, state laws determine who gets your assets.
-
I'm a Financial Adviser: This Is What You're Really Losing if You Cut Back on Your 401(k) Contributions
Missing out on the benefits of the employer match and compounding growth could force you to work longer and lower your standard of living in retirement. Here are some alternative options.