What If You Live Well Past 100? It Could Happen

How long are you planning to live in retirement? Most people think they’ll retire by 65 and, with luck, live to see 90 or so.

The reality is somewhat like that, but things also could be quite different for any given one of us.

For instance, a huge percentage of Americans actually retire, or last semi-retire, at 62, the first year they qualify for Social Security benefits.

Many, too, end up going back to work in some capacity or finding a more relaxed retirement job to make ends meet.

How about the other end of the equation?

Well, the current average life expectancy of Americans is close to 79. (Women live a little longer on average, men a little less.)

But, we’re adding years to the back end at a dramatic pace. By the end of this century it’s possible that humans might live to see 130, according to new research.

That’s an outlier number for sure, but for many working toward retirement now what the research means is that 80 or 90 and even 100 wouldn’t be a surprising outcome.

That means retiring at 65 requires planning for living 25 years in retirement — or more.

Long-term thinking

Does this mean people should perhaps plan to work longer? Have several careers over a lifetime? Maybe expect to retrain more than once in a lifetime?

All of that seems plausible enough, but the really big idea here is saving more and investing more early on, and then continuing to save and invest as you age.

It’s entirely possible that the nest egg you thought you might be tapping at 70 needs to keep growing and compounding until 80. And this doesn’t take into account added medical costs as you age.

So how can you manage to make your money last? By making sure it grows. A great way to do that is to invest in a portfolio that includes stocks, bonds and other investments, such as real estate and foreign stocks.

That used to be a complicated task, but low-cost index funds simplify the process while keeping expenses in check.

Adding diversification is easy if you already own a widely diversified stock fund, and that’s what a broad market fund does by design.

You might live longer than you expect, and you absolutely have to plan ahead if you want your money to grow old with you.

Thankfully, the tools and guidance are increasingly available to all levels of savers and investors.

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