If you are thinking about taking early retirement, think again. With the stock market in a funk and inflation soaring, this is a painful time for everyone but especially those who are living on a fixed income. When thinking about retirement, don’t look at the average life expectancy as the most probable outcome. This is an average, and many people live much longer. Sharon Carson, executive director of retirement insights for J.P. Morgan Asset Management, told USA Today that you should plan for 35 years of retirement if you are a non-smoker in excellent health. She also says that the lower your expected long-term investment return (which is typical as you get older), the more it pays to wait longer before claiming Social Security. So, for instance, a woman who expects a long-term investment return of 5.5% and has a life expectancy of 88 should consider claiming at age 70.
