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CURRENT TENDENCIES Three good for planning Increasing life expectancies Fifty years ago, the typical retirement lasted five or ten years. Today, the average man who retires at age 65 will probably see his 80th birthday; the average woman who retires at 65 will likely be celebrating her 85th.1
Decreasing government benefits In 1950, there were 16.6 workers for every person receiving Social Security. In 2010, that ratio will be 2.9 to 1.2 If significant changes aren't made, the government's own projections show that the Social Security trust fund will be depleted by the year 2030 and the Medi-Care trust fund will run out of money by 2002.3
And the constant march of inflation At an annual inflation rate of just 4%, a "1997 dollar" will be worth about 69 cents in ten years and about 46 cents in 20 years.
We're living longer, but can expect to receive fewer benefits. 1 . "Secure Your Future," Price Waterhouse LLP, 1996.
2. "After the Millennium," Newsweek, January 27, 1997.
3. "The Future of Retirement: It's Not What You Think," Fortune, November 4, 1996.  If you're a woman... Saving as much as you can is even more crucial. Here's why: Women live an average of seven years longer than men. Thus, they need more assets. Women change jobs more frequently and often leave the work force while their children are very young. Consequently, they receive smaller pensions. Because many women take time off to care for children, they also qualify for less income from Social Security. In 1996, for example, men received, on average, $870 each month from Social Security, while women received only $635.4 4. Social Security Administration Trust Fund Report U.S. Dept. of Labor, 1996.
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