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184 Don’t Make Me Say I Told You So

life expectancy time horizon. Remember, you may go decades
without a paycheck.

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The traditional rule of thumb has been to plan for 20 years of
income in retirement. And while your life expectancy at age 65 is

about 20 years, life expectancy is an average, meaning that 50%
of people live longer than 20 years in retirement and 50% don’t.

Those are the same odds as a coin toss, and probably not the
kind of odds you’re looking for as you plan for an important life

goal. The fact is, there is a significant likelihood you’ll live longer
than 20 years, perhaps much longer, after age 65.

Life expectancy for a 65-year-old man is 84.3. For a 65-year-old
woman, life expectancy is 86.7. These are averages, and many

people will live much longer than this. All of these extra years carry
increases, sometimes substantial, in living expenses and medical
costs. Chapter 5: Things That Can Wreck Your Retirement