The thing is, I think most of us could live okay with just a little supplement to SS. The "broke at 80" scenario is really pretty hard to get to if you start with at least enough money to have a decent shot at success.
The real risk for most people is needing to downgrade their lifestyle if they live a long time and their investment returns are subpar.
I think a plan to sell the house and live in a small apartment if you live past 85 probably makes more sense than a plan to work an extra 5 years to make absolutely sure that you can keep spending fairly high into your 80s, but its a personal decision, and it depends a lot on your family situation.
I would be much more willing to take the risk of being low-income in my 80s if I wasn't married with young children. The real likelyhood is not me outliving our money but my wife. I'm less inclined to make her take the risk of reducing her standard of living in her 80s/90s than if it was just me.
Originally Posted by Live And Learn
Prepare for the worst, hope for the best !
You can't plan long term with potential short term assumptions. What happens if you end up healthy ? Who want's to be 80 and totally broke, looking for handouts ?