One of the greatest worry’s for anyone who is retired, is running out of money. Of course, if we knew how long we would live it would make the process much less stressful. We could simply spend down our assets so they would run out, when we did.
Much has been written about life expectancy gains over the last century. Now with advances in science, on many fronts, we may see even more gains.
What should you do to prepare for a very long life?
What is My Life Expectancy?
We suggest you consider completing an online life expectancy calculator. This will allow you to get an estimate based upon your particular situation. These calculators ask some very personal questions about personal habits, family history, exercise and medical background. They use this information to tell you your number… how long will you live.
It is important to read all disclosures on any website. You want to protect your personal information. Read the fine print related to their privacy policies. Make sure you are comfortable with the information before completing any information online. As an alternative you could simply use a standard table. You can find one at the Social Security website. This page tells you that if you are a man at age 65 you can expect to live, on average, until age 84.3, for a woman the age is higher at 86.9. Recently, I read that if you are high income or education you can expect to live longer than average.
If you want to find a more specific example you could do a search on life expectancy calculators or visit Blue Zones (you need to provide an email address for this one). I personally completed both and was stunned to find my number! It seems I may live a very long time.
This causes one to think about how to prevent the money from running out.
How Do I Make Sure I Have Enough Money Saved for Retirement?
Everyone should create a financial model that looks at all their resources. This should include doing an accurate assessment on how and what you will be spending your money on while retired.
Of course any plan has many assumptions such as, asset returns, inflation, life expectancy and many ways to test the above. Build a plan, review your actual results over the years and compare. You then need to make mid- course adjustments. Many things we cannot control but having a clear financial model, we can.
A good plan, monitored properly can give people the confidence to enjoy their golden years. After all, living a long comfortable life is why we worked in the first place.
Know that many of life’s greatest treasures are found in personal relationships with friends and family. Many of these activities require little in the way of expense.
A long healthy life is a wonderful thing particularly if you have peace of mind.
Learn more about our Retirement Planning services, or if you’re ready, schedule a complimentary appointment with an advisor.