Longevity Planning: One of the Most Overlooked Risks in Retirement
One of the most common themes we discuss with clients today is something previous generations didn't have to think about to the same extent: longevity.
Advances in medicine, healthcare, and technology are helping people live longer than ever before. While that's certainly good news, it also creates a unique financial planning challenge. Simply put, the longer we live, the longer our retirement savings, income sources, and financial plans need to last.
In this video, we discuss what longevity planning means, why it has become such an important part of retirement planning, and several considerations that may help families prepare for a retirement that could span 20, 30, or even more years.
Planning for a Longer Retirement
Over the years, we've had many conversations with individuals who assumed they wouldn't live as long as their parents or grandparents due to family history or personal health concerns. While those factors certainly matter, one of the biggest mistakes we see is failing to plan for a long life.
The reality is that retirement planning often works best when we prepare for the possibility of living longer rather than shorter. Expenses don't stop simply because we've retired. In fact, healthcare costs, inflation, and lifestyle expenses can continue to increase over time.
Why Retirement Planning Requires More Than Saving
Retirement planning is about far more than accumulating a certain dollar amount. It involves creating a strategy that can adapt to changing circumstances over decades.
Some of the topics we discuss in the video include starting retirement savings early, maximizing catch-up contributions when eligible, evaluating Social Security decisions, considering phased retirement options, and planning for future healthcare expenses. While every situation is different, these are all areas that can play an important role in supporting long-term financial independence.
Healthcare Costs and Longevity Risk
One area that is frequently underestimated is healthcare spending.
Longer life expectancies often mean increased healthcare needs over time. Whether through Medicare planning, supplemental insurance, Health Savings Accounts (HSAs), or other strategies, healthcare costs should be part of any comprehensive retirement plan.
Preparing for these expenses in advance can help reduce surprises later in life.
Retirement Planning Is an Ongoing Process
If there is one message we consistently share with clients, it's that financial planning is not a one-time event.
Life changes. Tax laws change. Markets change. Goals evolve. A retirement plan that worked five years ago may need adjustments today. That's why regular reviews and ongoing planning conversations remain such an important part of the process.
In our experience, the most successful retirement plans are not necessarily the most complex—they are the ones that are revisited, updated, and adjusted as life unfolds.
Preparing for the Future
While none of us knows exactly how long retirement will last, we do know that longevity has become one of the most important planning considerations facing retirees today.
By planning proactively, staying flexible, and focusing on long-term goals, families can better prepare for the financial realities that often accompany longer life expectancies.
Watch the video to learn more about longevity planning, retirement income strategies, healthcare planning, Social Security considerations, and the importance of creating a retirement plan built to adapt over time.
Disclosures
For more information about Janney, please see Janney's Relationship Summary (Form CRS) at www.janney.com/crs which details all material facts about the scope and terms of our relationship with you and any potential conflicts of interest.
