1. The Number Of People Retiring Has Never Been Higher

As Baby Boomers near retirement, it’s no secret that the sheer size of this generation will have a compound effect on Social Security and healthcare programs. In 2000, adults aged 65+ represented 12.4% of the population; according to the U.S. By 2030, the Department of Health and Human Services Administration on Aging anticipates that number to rise to 19%. The number of Americans aged 45-64 who will reach the typical retirement age of 65 in the next two decades increased by 31% over the past ten years.

The vast size of this population and the questionable stability of government programs underscore the importance of building a strong and independent financial position as you near your golden years.

2. More Than A Third Of Retirees Rely Almost Entirely On Social Security For Income

As reported by the Social Security Administration, for 23% of married retirees and 46% of unmarried retirees who receive Social Security benefits, it constitutes 90% or more of their income. Where are you likely to be when you reach retirement age? Will you be one of the two-thirds of Americans who has multiple sources of retirement income, or will you heavily rely on support from the government?

3. Your Retiring Peers Are More Likely To Be In Poverty Than The General Population

2011 saw the U.S. The Supplemental Poverty Measure (SPM) released by the Census Bureau revealed that the poverty rate for older adults (those 65 and older) is just under 75% higher than that of the general population (15.1% versus 8.7%). The SPM takes into account living costs, non-cash benefits received and non-discretionary expenditures. Out-of-pocket medical expenses are the primary driver for poverty among older Americans, and they often pass that burden along to their families.

4. It’s Possible That You Have A Longer Lifespan Than Your Caregiver Does

Obesity and chronic illness cannot be overcome by Americans for much longer. According to the American Heart Association, the prevalence of obesity has tripled since 1963. Surgeon General Richard Carmona notes, “We may see the first generation that will be less healthy and have a shorter life expectancy than their parents.” Are you prepared to fund your own care, should your children not be able to provide support?

5. Retirement Might Be Bad For Your Health

Retirement offers the promise of relaxation, but in reality, it delivers challenges to both physical and mental health. Studies on retirement performed by the National Bureau of Economic Research revealed that complete retirement leads to a 5-16% increase in difficulties associated with mobility and daily activities, a 5-6% increase in illness conditions, and a 6-9% decline in mental health. These changes take place over an average period of 6 years. Your career required some degree of daily physical activity, and it’s critical to maintain that level of activity, or to add to it, throughout retirement.

6. You May Be Alone In Retirement

The Administration on Aging reports 47% of women aged 75 and older live alone. The story is less lonesome for males; older men are much more likely to be married than older women – 72% versus 42%. As you plan for retirement, take note of how much you’re able to care for yourself.

7. You May Not Be Alone In Retirement

When they discover that they still have significant family responsibilities in retirement, many retirees become disillusioned. According to the Administration on Aging, nearly half a million grandparents who are 65 or older are in charge of their grandchildren who live with them. The Administration on Aging also reports that crowded housing conditions are challenging for retirees who have their adult children or grandchildren living in the home.

8. The Way You Live Will Change

Retirees are frequently prepared for a shift in income, but they may not be ready to adjust their way of life and housing accordingly. According to a report from The Administration on Aging, 40% of older Americans face difficulties with housing because their costs for housing and utilities exceed 30% of household income.

9. It’s Possible That You’ll Outlive Your Retirement Fund

The average retiree can expect to spend nearly two decades in retirement. According to the Administration on Aging, adults over 65 have an average life expectancy of 19.2 more years—20.4 more years for females and 17.8 more years for males. A healthcare study by the Journal of General Internal Medicine noted that end-of-life medical expenses (in the last 5 years of life) range from $38,000 to over $100,000 depending on individual needs and the level of care provided. Is your portfolio designed to cover rising medical costs in the future while also providing a livable income now?

10. Retirement Portfolios Aren’t Keeping Pace With Increasing Life Expectancy

The Administration on Aging also reports that today nearly one in five Americans aged 65 and older are in the labor force; about 7.7 million Americans aged 65 and over are working or actively seeking work (The rates for both men and women have been steadily increasing since the year 2000.) The majority of these Americans are working because they have to; they simply haven’t saved enough for retirement. The Federal Reserve estimates that the average amount saved through a 401(k) plan is approximately $100,000, as pension plans continue to disappear. This amount is far from enough to secure a reasonable retirement and to plan for housing, healthcare and related costs.