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Longevity - Part 2

Longevity - Part 2

January 23, 2018
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In the first part of our discussion about increased life expectancy, we discussed how healthcare advancements are leading to people living longer lives. Today we want to discuss what that phenomenon means to clients trying to plan for a successful retirement. 
 
From 1950 to 2000, the paradigm in the financial planning world has been that you will work 35-40 years and accumulate the resources for a retirement that will last 15-20 years.  This paradigm is now changing rapidly.  
 
According to IRS life expectancy tables, today a couple both age 65 could expect to see the husband live approximately 18 years to age 83 and wife live approximately 20 years to age 85 or more.  
 
Studies have shown that people who work with financial planners tend to live an additional three to five years beyond normal life expectancy.  Not because their financial planners help them with increasing their health and wellness, but because of the fact that people who have the means to work with financial advisors also have the means and the access to the health care that they need to live longer and healthier.
 
This is a subject we will continue to monitor and pay significant attention to as the accumulation phase of life could end up lasting longer than it has before. In the future, people could work in multiple career cycles over 40 to 60 years of working life in order to accumulate the resources to live much longer in retirement.
 
If you have questions or want to discuss help these advancements in health and life impact your retirement plans, please let us know. We love to help our clients develop a picture of a successful future that they can live.