Longevity: The Hidden Danger of Nutrition and Exercise
You’re striving for a longer life, so you eat right, exercise and visit your doctor for regular checkups. But, did you know that with long life comes longevity risk?
Longevity risk is the risk of outliving your income. Just like you buy life insurance to protect your family in the event of your early death, you may need to plan for the possibility of living longer than you expect.
We’re living longer
Americans who live to age 65 have an average life expectancy of 83. And in a married couple with both spouses age 65, there is a 50% chance that one spouse will reach age 93.1 Quite a change from the days when 40 was considered ancient!
The U.S. Census reported a general population growth of 54% between 1960 and 2000 — and during the same period, the population of people over 85 grew by 369%.2 In fact, today’s retirees can expect to spend more years in retirement than the entire lifetime of people living a few centuries ago.3
And this trend isn’t slowing down.
Since 1983, life expectancy at age 65 has increased by 1.7 years for men and 0.6 years for women. This translates into a retirement period that is 11% longer for men and 3% longer for women. To support these longer retirement periods, people need to accumulate more wealth while they are working. Unfortunately, according to the Boston College Center for Retirement Research, this isn’t happening.
Will we pay for it?
But the news isn’t all bad. There are things you can do to plan for longevity. Just like you take time to exercise and eat right, you should take time to arrange for your future income needs.
There are financial products that can help you achieve the lifetime income you need. Talk to your investment professional today to discuss your specific situation. Don’t have an investment professional? Learn more about what an investment professional can do for you and how to choose one.
1Centers for Disease Control and Prevention, National Center for Health Statistics, Table 27, Life expectancy at birth, at age 65 years of age and at a75 years of age, according to race and sex, 2003
2NAVA, Understanding Annuities,Retire on Your Own Terms, 2003
3The Coming Generational Storm, Laurence Kotlikoff and Scott Burns, 2004