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Longevity

Longer Lives. Longer Retirements.

  • Americans are living longer.
  • Retirement could last 25 years or more.
  • Will you outlive your savings?

Long-Term Smart® Means Being Prepared

Did you know that life expectancy is not an estimate of how long you are likely to stay alive? Instead, it's actually a measure of the average number of years a person of a given age is expected to live. These days, the life expectancy of a healthy 65-year-old man is another 20 years or so, while for a woman of the same age, it's an additional 22 years.

Many people will live longer. A 65-year-old man has a 30% probability of living to 90; a 65-year-old woman has a 40% chance. And the chance that at least one member of a 65-year-old couple will be alive at 90 is higher—60%.1

Financial planning for this possibility is essential.

A 25-year Retirement is a Real Possibility

No one knows how long an individual will live. If you're healthy in your middle years, you need to think hard about longevity risk—the very real possibility of living 20, 30 or even 40 years past retirement age.

Retirement is Expensive

Consider a hypothetical retired couple eating 3 meals a day at a cost of just $5 per meal. Over 19 years, the couple will pay more than $200,000 for food alone. Imagine how much the rest of their retirement could cost.

Making Sure Your Savings Last as Long as You Do

There are a number of ways to prepare for longevity, including:

  • Start setting aside now. Give yourself time to build assets, and give your money time to grow.
  • Start setting aside more. You may need your money to last not just years, but decades.
  • Consider working longer. Even part-time work in early retirement can go a long way to extend the life of your income.
  • Backload your plan. Consider planning to increase the retirement income payments you receive as you age. This could help account for inflation and possible healthcare costs.
  • Plan for income. If you don´t have a pension, work with a representative to create additional income streams to supplement Social Security and 401(k) or IRA withdrawals.