What Is Your Life Expectancy?

Filed under: Retirement

Any time we sit down with a new client to plan their financial future, one of our main considerations is their life expectancy. Of course, we don’t have a crystal ball, but having some idea of how long a client will live can help us to figure out how they should prepare for retirement.

Once you stop working, you will have to live off of whatever retirement income you previously planned. While our grandparents and parents may have expected to live only a few years, or perhaps a decade or so after retirement, nowadays many people can expect to live another 20 or 30 years. If you didn’t adequately prepare for retirement, this can put you at risk of outliving your money.

Researchers at the University of Pennsylvania recently analyzed various indicators of life expectancy, and decided upon eight factors which appear to be most important:

● Current age
● Ethnicity
● Gender
● Marital status
● Smoking habits
● Seatbelt use
● Time spent traveling
● Exercise habits

Some of these factors might surprise you, while the omission of others may be even more shocking. For example, being happily married appears to be one of the most important factors that ensure a longer life. But surprisingly, alcohol use and diet did not make the list. If you’re curious about your own estimated life span, you can take the brief quiz published online by Time Magazine.

Once you stop working, you will live on a combination of Social Security and another form of retirement income. It’s this “other form” of income that concerns us the most. While you may be saving faithfully for retirement, remember that it’s important to review your plan regularly to be sure you will be able to cover your living expenses.

If you’re concerned about the possibility of outliving your money, make an appointment with a financial professional. Together you can review your expected life span, goals, and financial abilities to make sure your plan for the future will help you enjoy a stable lifestyle in retirement.