The Rise and Importance of Longevity Planning

By December 2, 2021 No Comments

The U.S. population is getting older. In fact, by 2024, our country will hit Peak 65 – the greatest surge of Americans turning 65 in our country’s history. And, with the number of centenarians rapidly rising – the group has already expanded 44% since 2000 and is projected to increase six times over the next 40 years – people are starting to consider how to plan better for living longer.

While there are many factors at play – including genetics, lifestyle choices, and access to healthcare – longevity is something your clients should be financially planning for and prioritizing. This relatively new and more holistic approach to retirement preparation can provide them with the support they need to take advantage of opportunities, cope with challenges and plan for the unexpected in retirement.

Strategic longevity planning can also help them budget for late-in-life expenses and ensure that every aspect of their wealth picture is understood and incorporated into their long-term plan.

Here are five important steps they can take now to help ensure they won’t outlive their life savings later.

  1. Envision what they want their retirement to look like: Imagine how they would ideally like to live in their later years. To start, they should ask themself some core life-planning questions such as, ‘What do you want out of life, what gives you joy, and how do you plan to pay for it?’ Identifying what brings them purpose, joy and meaning will help them set goals, plan and manage their finances and make the most of their retirement years, which current trends indicate could last three decades or more.
  2. Save, save, save: Living a long life requires a solid nest egg and the ability to withstand any number of financial and other shocks. Online calculators can help them estimate their retirement income and tweak their portfolios to adjust risk and/or improve returns.
  3. Invest in a lifetime annuity: An income annuity is a cost-effective way to guarantee income for life and combat longevity risk. It can help supplement other sources of guaranteed income such as Social Security and can be especially valuable if they don’t have a pension. Annuities can also help to protect them against the risks of stock market volatility. Their payouts will continue no matter what happens in the markets – or how long they live.
  4. Consider an integrated profile: A blended financial portfolio that includes annuities can result in a higher income level throughout retirement and a greater amount of legacy assets available to beneficiaries than an investment-only asset allocation approach. By diversifying their assets, they can invest in other funds more aggressively knowing a portion of their income is always safe and secure.
  5. Remember, one size does not fit all: Longevity planning is a very individualized process and there is no one financial savings tool or strategy that will meet everyone’s needs. Engaging an experienced and skilled insurance professional can help you establish a plan for your clients and get their financial affairs in order so that they can live the life they want in retirement.

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Contact Mike Van Horn at 877.455.0119 x 226 or email him at