You’ve probably heard it before. People are living longer! The average life expectancy has been increasing one year every five years, according to World Economic Forum. Kids born in 2017 can realistically expect to live to 100. But what does the probability of increased longevity mean for your wealth and health?
Look into the numbers
It’s easy to get excited about all the possibilities of living a longer, fuller life. However, more time on earth means possibly working longer and increasing your necessary savings. Here are some recent statistics to keep in mind:
Obviously, it’s important to prepare for retirement before the time comes. Also, remember that these numbers are just averages. Where you live, your hobbies, your health, and your desired retirement lifestyle are also factors that need to be considered.
For example, if you’re a minimalist in good health and want to downsize when you retire, your average cost of retirement could be lower than the national average. On the other hand, if you plan on traveling abroad, choose to continue unhealthy habits such as smoking, and are accustomed to a higher standard of living than your peers, the number could be higher.
Then again, it’s also important to plan for life’s unknowns. Some people unexpectedly live beyond 100 or become diagnosed with an undesirable health issue.
So how do you prepare for living longer and the financial variables associated with it?
Seek guidance and financial knowledge
The most important thing you can do is talk to a financial professional. He or she will be able to evaluate your current investment strategy and offer comprehensive guidance to retirement planning.
Here are some other general tips and guidelines to broaden your financial knowledge around retirement preparation:
With an increase in life expectancy, preparing earlier for retirement is worth considering. Take the time to map out how you’ll want to live in future years, set up a meeting with your financial professional to see how you can get the most out of your investments, and stay tuned to Transamerica’s Knowledge Place to keep up with financial trends in retirement.
Neither Transamerica nor its agents or representatives may provide tax, investment or legal advice. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely on their own independent tax and legal advisors and financial professional regarding their particular situation and the concepts presented herein.
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