Retirement FactsRetirement Facts

Darrin J. Shallcross Financial Planner

Darrin J. Shallcross is a registered representative of Lincoln Financial Advisors Corporation

Retirement Facts

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Retirement Facts

In 1950, what was the average life expectancy?

65 years

68 years

72 years

68 years

Source: Centers for Disease Control & Prevention, National Center for Health Statistics, National Vital Statistics Program, 2007.

Retirement Facts

68 years

Retirement Facts

Today, the life expectancy for people who live to age 65 is an additional

18 years, or to age 83

Source: Centers for Disease Control & Prevention, National Center for Health Statistics, National Vital Statistics Program, 2007.

Retirement Facts

The life expectancy for those who live to age 65 is higher for women (20 years) than for men (17 years)

Source: Centers for Disease Control & Prevention, National Center for Health Statistics, National Vital Statistics Program, 2007.

Retirement Facts

In 1950, what was the average length of retirement?

8 years

13 years

17 years

8 years

Source: Smart Money magazine, 2007.

Retirement Facts

8 years

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The average length of retirement has risen to about 20 years in 2007

Source: Smart Money magazine, 2007.

Retirement Facts

Today, the average price of a single-family home is $274,600. What was the average price of a

single-family home in 1976?

$44,200

$51,700

$57,300

Source: U.S. Census Bureau, New One-Family Houses Sold.

$44,200

Retirement Facts

$44,200

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If you’re 65 today, an expense that currently costs $100 will cost $180 by the time you’re

80, assuming an inflation rate of 4%

Source: U.S. Census Bureau, New One-Family Houses Sold.

Retirement Facts

What percent of Americans are expected to need long-term care?

45%

50%

65%

Source: Aging & Elder Health Week, April 2007.

50%

Retirement Facts

50%

Retirement Facts

Health care costs have become a big concern for retirees:

54% of people are forced to retire because of health problems or disability

44% spend more than expected on health care expenses

Source: Employee Benefit Research Institute’s Retirement Confidence Survey®, 2008.

Retirement Facts

What percent of nursing home residents exhaust their resources within 12 months?

50

60%

70%

Source: Nursing Home & Elder Business Week, October 2007.

70%

Retirement Facts

70%

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In 2007, total national health expenditures were expected to rise 6.9% — two times the rate of inflation

Total health expenditure were $2.3 trillion in 2007, or $7,600 per person

U.S. health care spending is expected to reach $4.2 trillion in 2016

Source: National Coalition on Health Care website. From Poisal, J.A., et al, Health Spending Projections Through 2016: Modest Changes Obscure Part D’s Impact. Health Affairs (February 2007).

Retirement Facts

What percent Americans have not calculated how much money they will

need to save for retirement?

33%

39%

47%47%

Source: Employee Benefit Research Institute’s Retirement Confidence Survey®, 2008.

Retirement Facts

47%

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44% of workers who calculated a goal changed their retirement planning

Of those individuals, 59% started saving or investing more

Source: Employee Benefit Research Institute’s Retirement Confidence Survey®, 2008.

Retirement Facts

Social Security replaces what percentage of the average worker’s pre-retirement income?

43%

53%

63%

Source: Economic Policy Institute analysis of Social Security Administration 2006, Table VI.F10

43%

Retirement Facts

43%

Retirement Facts

71% of workers are not too or not at all confident that Social Security will continue to provide benefits of at least equal value to the benefits retirees receive today

Source: Employee Benefit Research Institute’s Retirement Confidence Survey®, 2008.

Retirement Facts

64% of workers are not too or not at all confident that Medicare will continue to provide benefits of at least equal value to the benefits retirees receive today

Source: Employee Benefit Research Institute’s Retirement Confidence Survey®, 2008.

Retirement Facts

By the year 2050, what percentage of adults are expected to be 65 or older?

24%

27%

31%

Source: The Urban Institute, Work and Retirement: Facts and Figures, 2006.

27%

Retirement Facts

27%

Retirement Facts

Fewer retirees believe they can simply cut back on their lifestyle if it looks like they might outlive their retirement savings (61% in 2008, down from 70% in 2007)

39% of retirees now think they are likely to outlive their retirement savings (up 10% from 2007)

Source: Employee Benefit Research Institute’s Retirement Confidence Survey®, 2008.

Retirement Facts

Delaying retirement by five years would enable individuals, on average, to increase annual retirement spending by what percent?

36%

46%

56%

Source: The Urban Institute, Work and Retirement: Facts and Figures, 2006.

56%

Retirement Facts

56%

Retirement Facts

Only 5% of workers think saving for retirement is their most pressing financial concern. Here’s what concerns them more:

ConcernMaking ends meetPaying for health insurance or medical expensesMaking mortgage or rent paymentsPaying down debt or loansCoping with fuel or energy costs

Percentage17%

161613

9

Source: Employee Benefit Research Institute’s Retirement Confidence Survey®, 2008.

Retirement Facts

What is the percentage of workers who are very confident about having enough money for a comfortable retirement?

18%

27%

35%

Source: Employee Benefit Research Institute’s Retirement Confidence Survey®, 2008.

18%

Retirement Facts

18%

Retirement Facts

The percentage of workers who are very confident about having enough money for a comfortable retirement decreased sharply, from 27% in 2007 to 18% in 2008

Retiree confidence also decreased, from 41% to 29%, a 12% drop from 2007-2008

Source: Employee Benefit Research Institute’s Retirement Confidence Survey®, 2008.