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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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)
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.
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.
Talk to an expert on annuities or structured settlements depending on your situation.
Live to 100. Sounds great.But we must consider the ownsides of longevity?
its main a lot and help us know the annuity programs.
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?
Thats why people are looking for making more money online before their retirement and Before 100 years.
u may live up to 100 years, but be aware if u have reached 60′s
insurance cannot guarantee
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
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
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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
Helpful advice in car buying.
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.
regards Brian atwood
ust this week, I’m announcing my retirement at work — effective in June — and it was terrific to have a cheery prognostication of nearly thirty years to enjoy it in! (And that’s without looking up my blood pressure figures, which I’m always told are stellar!) my news
Live to 100? its time too long…
and If we almost there its a miracle, don’t you?
The question should be does anyone wants to live for 100 years rather than what’s your longevity, I think.
The truth is that none of us save enough to buy a large annuity and so a fixed term annuity sounds an interesting option. Clearly this means that the annual sum is likely to be reduced to hedge against the fact that you may live longer, but it certainly beats running out of cash at a vulnerable time in your life
The most important when you want to live until 100 is do you have enough pension or savings. Therefore we must plan carefully. If not I don’t think we could survive.
wow, the above are some really telling figures. The equity release (or the reverse mortgage) option is definitely a wise choice for people who have good longvity genetically (from parents). OI also read recently that in the modern times, 1 in 6 people will be living untill 100 (which is staggering more than previous figures).
As an individual who holds an insurance license, I agree that fixed immediate annuities are a great source that will provide a steady flow of income for those in retirement. I am still not sure how confident I am about reverse mortgages, and any drawback that they may include. Does anyone know of any great online resources for reverse mortgages?
Nice post, its interest post for me. i like the title, live to 100 is sounds great and interest title for me.
Thank you for share.
have a great day.
That is a tough one, somewhat of a paradox. However, I most likely won’t have this problem because I am one of those who procrastinated saving for retirement, so I won’t have much of a choice here.
thanks for the article ….. This article is great for the reasons before taking the annuity program
This is a smart blog. I mean it. You have so much knowledge about this issue, and so much passion. You also know how to make people rally behind it, obviously from the responses. You’ve got a design here that’s not too flashy, but makes a statement as big as what you’re saying. Great job, indeed. “So how long of a retirement should you plan for?” I am still 22 & I am not thinking about retirement now.