Might You Live to 100?
Live to 100. Sounds great. But what are the downsides of longevity? “How can there be downsides?” you may ask. After all, you’d have more time to golf, go fishing, and spend with the grand-kids. Well, the risk may be that if you hadn’t planned to live that long you could end up running out of money. Very few people have sufficient retirement savings to live to 100. Yet, if you are already age 70, life expectancy of living to age 100 is 3% (one of every 33 people). If you make it to age 80, then your life expectancy to 100 jumps to 4% (one out of 25 people).
So how long of a retirement should you plan for? How can you prepare for significant longevity?
According to the IRS longevity tables, a 70-year-old person is expected to live for 17 more years to age 87. However, this is an average. Half of the 70-year-olds will live longer, and half will not. Therefore, a 70-year old individual who is basing his or her retirement plan and spending habits on living to 87 is rolling the dice. Furthermore, when you consider that there are more than 70,000 U.S. centenarians who represent the fastest-growing segment of our population, there is reason to take notice.
However, planning too conservatively could be detrimental as well. After all, you don’t want to cut your standard of living down to the point that you’ll be miserable. And of course, you always have the option to make adjustments in your spending as time goes on.
All of this comes down to two simple facts; you can control how long your money will last, but you only have a limited ability to predict how long you will live. So what can you do to reduce the risk of running out of money too soon?
A fixed immediate annuity offers an income that will continue for a lifetime, no matter how long you live, and it will help you plan for the possibility of living to 87, 107, or beyond. The other option is a reverse mortgage–your ace in the whole should you ever need it.
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Tags: fixed annuity, life expectancy, longevity, prospectmatch, reverse mortgage
October 26th, 2009 at 10:26 pm
Very interesting and important subject, how exactly does one plan for retirement when X (years of retirement before death) can never be known. Using the average is probably useful but it would be smart to also consider ones current health when coming towards retirement and also put a “cushion” in your retirement plan by adding a few years to your anticipated longevity and plan accordingly for retirement. Better safe then sorry!
- Amy (So. California, USA)
November 11th, 2009 at 7:57 pm
Hmm… this article is good to be a reasoning before take annuity programs , but it look like will take more cost and reduce the annuity itself.
December 23rd, 2009 at 2:12 pm
A fixed immediate annuity sounds ideal for someone planning a long term agreement and investment, and particularly if you have reason to expect a long life. In 40 years or so, i hope to be sat retired, painting Monet art in my lounge with a full 30 years left for me. A postive attitude and secure financial background will calm your nerves, and probably help alot to attain this 100 target.
February 25th, 2010 at 5:41 pm
Talk to an expert on annuities or structured settlements depending on your situation.
March 3rd, 2010 at 3:11 am
Live to 100. Sounds great.But we must consider the ownsides of longevity?
May 21st, 2010 at 5:47 am
its main a lot and help us know the annuity programs.
May 25th, 2010 at 7:09 am
Can the heirs of the pensioner took his father’s pension rights? if the father dies, while leaving the children, what about the pension money for child support?
June 23rd, 2010 at 10:58 am
Thats why people are looking for making more money online before their retirement and Before 100 years.
July 27th, 2010 at 7:30 am
u may live up to 100 years, but be aware if u have reached 60’s
insurance cannot guarantee
July 29th, 2010 at 10:58 am
How about Upsides ?
In my opinion it’s not so bad to live till 100, actualy great, realy….
If someone asks you about world war you can tell very detailed info moreover you will have knowledge, real, about many things on this page http://en.wikipedia.org/wiki/20th_century
but unfortunately, I don’t think so I can live till 100 as there are lots of danger around us.
so; enjoy your time
July 29th, 2010 at 5:18 pm
I think saving up for retirement is a big thing. We are not going to be able to live off just our pensions when we retire. So many people are going to be living on very little money per week. And as the population gets older it will only get worse
August 7th, 2010 at 9:17 am
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August 19th, 2010 at 2:07 am
In my opinion, investing is also a good way to boost retirement age income. Pension alone is not sufficed to pay the bills. Just make sure not to get scammed. I must say, living to a 100 sounds kinda great, watching you grandkids grow up.
William
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