I just calculated my life expectancy at www.livingto100.com, and found that I should live to 99. A few months ago, my doctor also told me I’ll likely live into my 90s. She based her assessment on my grandparents’ longevity, which I had indicated on the multi-page medical history form that most doctors have you fill out now. In any case, two of my grandparents lived into their nineties, and one into her eighties. That means the odds are pretty good that I’ll be around a while, as well.
Apparently, I’m not the only one who has a good chance of living a long time. According to a recent study in the UK-based medical journal The Lancet, most babies born in developed countries after the year 2000 can expect to eventually see 100 candles on their birthday cakes. A summary of the study is available here.
Of course, no one really knows how long anyone will live. However, I’ve begun thinking about what it might be like to have another 50 years to bug my kids, hang out with my husband, and enjoy peanut butter fudge ice cream. And, while it may sound crass, figuring out the financial implications of living through nine or ten decades is important as well. After all, I’d like to be able to have some choices about where and how I live as I get older. That’s probably going to require money.
So, I’m thinking I’ll need to take a couple steps:
a) Work longer. Assuming I’m in good health, retiring at 65 just doesn’t seem prudent, or even like much fun. For starters, I’ll probably need the money. The longer I can hold off on claiming Social Security (assuming it’s around), the better. For each year I wait, my benefits will grow by about 8 percent, as this chart shows. What’s more, while I’ll probably reduce my schedule as I get older, I don’t need 30-some years just to hang out. I like the intellectual stimulation and socializing (even for a freelance writer camped out in a home office) that working provides.
b) Save for retirement: OK, my husband and I already doing this. However, the more I think about out possible life expectancies, the more it hits me just how critical our actions are. We really can’t just spend now and assume the money will somehow fall into place later on; we’ve got to act with the long haul in mind.
c) Stay more or less in shape. I’m already seeing how my health is becoming more of an issue as I get older; injuries take longer to heal, and it’s tougher to get by on just a few hours of sleep. I’m guessing that’s only going to accelerate. For both my physical health and our pocketbook, I’d like to keep medical issues and expenses to a minimum. I realize that plenty is outside my control. However, I can keep an eye on my diet (and my husband’s for that matter) and stay active. Fortunately, I usually look forward working out, so that’s not too much of an issue. As for my diet – well, it’s not bad, but I could cut back on the treats.
d) Keep tabs on what’s going on in Washington. OK, staying informed is our responsibility as citizens. At the same time, much of the legislation that’s passed has an impact on our pocketbooks in one way or another. Given all that’s going on in the economy, changes to retirement plan and health care regulations, as well as Medicare and Social Security and taxes are likely. I’d like to have some idea of the impact of possible changes on both my finances and the overall health of the economy.
How about you? Any thoughts on your own longevity and how it might impact your finances?