65+5+Dividends

It’s common for retirement planning today to focus on investment needs up to retirement rather than through retirement. Yet thanks to medical advances and healthier lifestyles, adults who retire at age 65 are now far more likely to live well into their 80’s and 90’s. According to the 2010 Federal Interagency Forum on Aging-Related Statistics, adults age 65 can now expect to live an average of 18.5 more years — about 4 years longer than people age 65 did in 1960. Women who survive to age 85 today can expect to live 6.8 more years, while men can expect to live 5.7 more years. As a result, planning to cover at least three decades of living costs is not only desirable, it is virtually essential.

This white paper from ClearBridge Advisors makes the case for why investors should have exposure to quality dividend stocks in the first five years of retirement.