Is The Break-Even Age Misleading Your Retirement Planning?
The break-even age may be one of the most misleading numbers in retirement planning.
You may have heard that a retirement strategy doesn't make sense because you'd have to live until age 90 for it to "pay off." On the surface, that calculation can sound convincing. The problem is that the number may be measuring just one thing while leaving out five other important factors.
What Does the Break-Even Age Leave Out?
A traditional break-even calculation may not account for the broader impact of forced withdrawals, taxes on Social Security, higher Medicare premiums, fees paid on the government's share of your retirement account, and what you ultimately leave behind for your loved ones.
That's five additional considerations that could significantly change how you view the numbers.
Once those factors are added back into the retirement planning conversation, the idea that you simply need to "wait until 90" may begin to look very different.
Look at the Bigger Retirement Picture
Retirement decisions shouldn't necessarily be based on a single calculation. Understanding how taxes, withdrawals, Medicare costs, fees, and your legacy work together can provide a more complete picture of your retirement account.
In the latest video on The Retirement Architect, we break down all five factors and explain why the real retirement math may look very different from what you've been told or expected.
Head over to The Retirement Architect on YouTube to watch the full video and subscribe for more retirement planning insights.
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