Are you planning for longevity?  A 65-year-old couple of average health has a 50% chance of at least one partner living to at least age 93.1   A risk to many people’s retirement plans is the risk of living longer than anticipated.  Does your retirement planning account for this risk?  We all know that planning ahead it is important, but many of our clients forget that there is more than market and inflation risk. Planning for a long retirement is a necessary component of any retirement strategy.

So, what should you do? 

1.      Review your retirement expense budget.  Make sure to account for additional expenses associated with a long life, including:  increased health expenses or long term care costs.

2.      Review your planning assumptions to ensure that your retirement income projections accommodate a long life and provide the income necessary to sustain your lifestyle

3.      Adjust your savings now to provide extra income in retirement.

4.      Review and update the assumptions in your retirement plan at least once each year.

Longevity risk, just like other financial risks, can be managed with a good plan and financial discipline.


1 “Retirees Often Choose Income Strategies That Increase Risk to Retirement Security,” LIMRA (January 2016)