How old will you go?

Americans are retiring in good health and living longer.

That's good news for operators of golf clubs and retirement villages, but a frightening proposition for many Baby Boomers and retirees, who may be surprised when they realize how long their life savings could need to sustain them.

Actuarial studies show that men who reach the age of 65 have a 49 percent chance of living to the age of 86, and a 26 percent chance of reaching 92.  Women are even hardier: by age 65, they have a 49 percent of living to 89, and a 23 percent chance of hitting 95.

Given this outlook, many Americans will need help developing retirement plans that give their nest egg a reasonable chance of lasting as long as they do--especially since missteps in retirement can be devastating to their portfolio's longevity.

As you periodically stuff money into retirement accounts during your working years, market downturns are akin to supermarket sales: They allow you to buy more merchandise--in this case securities--than you could when the market was rising.  When the market reenergizes, you benefit because you have more shares with which to participate in the recovery.

Of course, figuring out how and where to invest your money is just one part of the retirement planning puzzle; the other is figuring out how to withdraw that money in such a way that it doesn't run out before you do, given that you can't know for certain how long you'll live.

Source: The Wall Street Journal, October 4, 2008

For more on the baby boomer generation, visit the Blogging Boomer Carnival at www.VaBoomer.com