In 1930 the average life expectancy of a woman was 62 and a man was 58. Today a woman can expect to live 86.6 years and a man 84.3 years. These stats come directly from the social security administration. Now that I’m in my 50’s this is very good news, but it also means planning for a longer life.
15 years ago, a client of mine shared that he was not concerned about the amount of money he had for retirement because he told me he would never live to 75.
Today that same individual is 75 and is still playing golf…who knew?
Well actually I had a hunch he might make it. When it comes to long term planning, another consideration if you are married is that the joint life expectancy of a couple is about 90. This fact is important not only for general planning purposes but also for social security planning. Social security is an individual benefit but when making elections one needs to consider the needs of both spouses. This line of thinking also applies when making pension elections from a defined benefit plan.
As always before making any changes to your plan consider getting advice.
Cheers!