But longer life also means your savings must last longer, so you don’t run out of income before “running out of time.”
In the past, many retirees could also count on a regular income from an employer-sponsored pension. Today, however, pensions are very rarely offered by employers. Most retirees now must rely on what has been saved in defined contribution plans like 401(k)s, in hopes there will be enough to generate livable cash flow in retirement.
There are other concerns that must also be planned for in retirement, like the need to keep the principal intact so you don’t lose your hard earned assets in a volatile or downward moving market.