Many Americans spend their lives working hard and dreaming of the day they can finally retire. But planning for retirement requires more than dreaming — it means being strategic and focused on saving money, among other things. Of the 47.8 million Americans ages 65 and older, the average income is only $38,515 dollars, according to the U.S. Census, and their average net worth is $170,516. With numbers like that, saving for retirement can be challenging. Average life expectancy is not a good way to plan for how much money you’ll need in retirement; many Americans live much longer than the average of 78.7 years, going well into their 80s or 90s. According to the Social Security Administration's website, a healthy 65-year-old woman has a very good chance of living to age 86, and a 65-year-old man has a good chance of reaching age 84. Older adults should save for a retirement that could last at least 20 years.