The Society of Actuaries reveals that 43% of retirees underestimate by at least five years how long they will live.
We’re simply living longer. That’s the news from the Social
Security Administration, which says one out of four people who are age 65 today
will live beyond age 90, and one in ten will live beyond age 95.
Yet that very longevity we all hope for is something we
never quite seem to plan for. In fact, the Society of Actuaries reveals that
43% of retirees underestimate by at least five years how long they will live.
That, coupled with plan participants’ lack of figuring health problems into
their long-term planning process (Fidelity Investments estimates healthy
couples will require $245,000 for medical expenses during retirement), could
mean running out of money well before one’s time is up.
That begs the question: how can one estimate a lifespan? And
how can retirement advisors steer participants toward the best estimate?
Knowing How Long
There’s no way of knowing exactly how long any one person
will live. Various factors influencing health, including heredity and habits,
play a role in determining one’s longevity. Still, retirement advisors can help
plan participants see an overall picture of how much retirement income they
might need. For example, participants can use the Social Security
Expectancy Calculator to see what the average life expectancy is for that
person born on a particular date.
Still, other factors influence your plan participant’s life expectancy – factors such as:
A good calculator for helping your participants see their
predicted life expectancy is Living To
100. Basing life expectancy on a variety of habits and factors, the
calculator gives a more comprehensive view of a life expectancy plan
participants should consider in their retirement planning.
Investing in Longevity
Advisors can help plan participants save the most for their retirement by:
Helping plan participants save for a longer life now will bring them additional peace of mind as retirement looms. Retirement advisors can be the trusted partner in ensuring a comfortable retirement with enough savings to last a lifetime.
Before leaping into the unknown, we recommend a thorough examination of your plan. Because we are experts in the field, we know the marketplace and know what your existing vendor is capable of offering. Through this examination, we can help you optimize the service you receive.get xpress proposal