Why Planners Assess Longevity Now?

CNAES

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Post on Nov 14, 2024

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Why Planners Are Suddenly Obsessed With Longevity: A New Era of Financial Planning

The world is changing, folks. And not just in the way we wear our pants (remember skinny jeans? shudder). Life expectancy is skyrocketing, and that's got financial planners freaking out – in a good way, of course.

Gone are the days of planning for a 20-year retirement. Now, we're talking about living longer and spending more years in retirement. This is great news for enjoying life's golden years, but it also throws a wrench into traditional financial planning.

Think about it: How do you plan for 30, 40, or even 50 years of retirement? That's a whole lot of expenses to cover, including healthcare, travel, and even potential long-term care.

Here's the kicker: Traditional retirement planning was built on the assumption of a shorter lifespan. It focused on saving enough to cover a limited period of time, relying heavily on Social Security and pensions. But those assumptions are fading faster than your last pair of ripped jeans.

So, what are planners doing? They're dusting off their calculators and getting real about longevity. They're ditching the outdated models and embracing a new approach that factors in the potential for a longer, healthier life.

Here's the deal: Longevity planning is all about taking a long-term view of your finances. It involves:

• Adjusting savings goals: You'll need a larger nest egg to cover decades of retirement.
• Diversifying investments: You need to find investments that will grow over the long haul and keep up with inflation.
• Planning for healthcare expenses: Healthcare costs are rising, so you'll need a plan to cover them.
• Considering long-term care: As we live longer, the risk of needing long-term care increases.

The good news is that longevity planning isn't just about preparing for the future; it's about living your best life now. By taking a long-term view of your finances, you can free yourself from financial worries and focus on what really matters: enjoying your retirement years.

But don't get too comfortable with those retirement plans just yet. We're talking about a lifetime of financial planning here. Stay tuned for more on this evolving landscape and how you can navigate the challenges of longevity planning. Because one thing's for sure: The future is long, and you'll want to be prepared for it!