• Skip to main content
  • Skip to header right navigation
  • Skip to site footer
Bautis Financial

Bautis Financial

Secure your Castle, Achieve your Dreams.

  • Schedule a Call
  • Podcasts
    • Agent of Wealth
    • Clear a Path
  • About
    • Our Approach
    • Our Team
    • Our Difference
  • Who We Work With
    • Individuals and Families
    • Small Business Owners
    • Retirees and Pre-Retirees
    • 401k Plan Sponsors
  • Insights
    • Blog
    • Business Valuation Advisor
    • College Planning Hub
    • Discover How
    • Learning Center
    • Risk Score
  • Client Access
    • Wealth Center
    • Orion

Financial Complexities of a Longer Life

March 6, 2018 by Bautis Financial

Americans are living longer. That’s the good news. The bad news is that most people aren’t financially prepared. Many Baby Boomers will be in retirement for over 20 years and unfortunately, many aren’t saving and investing with a longer life-expectancy in mind.
There are serious consequences to financial planning around the wrong life expectancy. Some retirees are working later in life; others live in fear of running out of money, while others are leaving less of a legacy than they hoped. No one wants to run out of money in retirement.

How Long Should You Expect to Live?
The Social Security Administration notes that at 65-years old, the average man can expect to live to roughly 84.3 years of age, whereas the average 65-year old woman can expect to live until age 86.6. This means that on average, Americans can expect to spend about 20 years in retirement.
However, there is a strong chance that you should plan to be in retirement much longer than 20 years. One out of every four 65-year olds will live past the age of 90, and one out of every 10 will live past the age of 95. Are you prepared for three decades of retirement? Most people aren’t.
With these figures in mind, here are 3 steps that can be taken to ensure your financial longevity:

Step 1) Develop a Clear Vision of Your Retirement Lifestyle
To create a well-conceived plan and have the will to faithfully execute it, you need a clear vision of your lifestyle in retirement. Start by defining your goals and asking yourself:

  • Where will I live?
  • Where will I travel?
  • What will I drive?
  • How will my hobbies change?
  • Where will I donate my time and money?

It’s important to factor realistic spending assumptions into the cost of your retirement, based on your goals and desired lifestyle. Your plan should also include contingencies for health care costs and unexpected expenses.

Step 2) Adjust Investment Strategies
Start to plan for a longer retirement by adjusting your investment strategies — like saving more, being slightly more (or less) aggressive with your investment strategy, etc. We ensure our clients have these bases covered, so consider calling us if you’d like someone to review your investment strategies. We’re experienced in retirement planning if:

  • You are within 5 years of retirement
  • You have recently experienced a significant change in your income
  • Your investment accounts are exposed to higher risk due to natural market fluctuations
  • You aren’t confident that you are still on-target for your retirement and legacy goals

Step 3) Consider Health Insurance Options
Health insurance is the most expensive and bothersome insurance the average individual carries. Unfortunately, many people approach retirement and believe that the burden of health insurance will be lifted. In reality, even when covered by Medicare and other supplemental insurance plans, there are still substantial costs left for the individual to pay.
In addition to premiums, deductibles, and co-pays, prescription drug costs are likely to rise. In the last decade, the average annual cost of one brand-new drug used to treat chronic health conditions cost a senior $5,800 (2015), compared to $1,800 less than a decade earlier (AARP). Planning for a longer retirement requires keeping a keen eye on the rising cost of healthcare in the US.

Understanding the stresses that come with ensuring your financial longevity, we’re here to help you sort out the complications of an ever-changing financial plan. Contact us to review your retirement, legacy, and estate plans. Together, we’ll create a clear strategy that points you toward a comfortable retirement, whether it lasts one decade or three.

Category: Retirement Planning
Previous Post: « 2018 Key Financial Data Card
Next Post: Summer 2018 Key Planning and Investment Deadlines Spring 2021 Key Financial Dates »

Sidebar

Featured Articles

bautisfinancial risk number

Recent Posts

Why — and How — Are the Wealthiest So Wealthy?

Why — and How — Are the Wealthiest So Wealthy?

March 29, 2023 By Bautis Financial

Dog Walking Side Hustle

44% of Americans Report Having a Side Hustle Amid Inflation

March 28, 2023 By Bautis Financial

Stock Market Recap

Market Recap Week of 3/20/2023 Through 3/24/2023

March 27, 2023 By Bautis Financial

How to Teach Your Children to Invest Like a Honeybee With Henry Svec

Episode 148 – How to Teach Your Children to Invest Like a Honeybee With Henry Svec

March 24, 2023 By Bautis Financial

Fed Hikes Rates by a Quarter Point and Indicates Increases May Be Nearing an End

Fed Hikes Rates by a Quarter Point and Indicates Increases May Be Nearing an End

March 23, 2023 By Bautis Financial

Blog Categories

  • Budgeting/Saving (36)
  • Business (53)
  • Clear A Path Podcast (6)
  • Client Resources (4)
  • College Planning Learning Center (2)
  • College Planning Podcast Series (3)
  • Daily Flash Briefing (1)
  • Education (33)
  • Estate Planning (16)
  • Finance News (587)
  • Insurance (27)
  • Investments (248)
  • Learning Center (25)
  • Lifestyle (52)
  • Miscellaneous (50)
  • Personal Finance (160)
  • Politics (21)
  • Real Estate (48)
  • Retirement Planning (104)
  • Social Security and Medicare (28)
  • Taxes (49)
  • The Agent of Wealth Podcast (147)
  • Uncategorized (109)
  • Videos (154)
  • Wealth Management (72)

Subscribe to Our Insights

Sign up to receive valuable financial insight and updates straight to your inbox each week.

Social

Follow along on social media

Contact

Bautis Financial
7 North Mountain Ave
Montclair, NJ 07042
Get directions
862-205-5800
Contact

Navigation

  • Schedule a Call
  • Podcasts
    • Agent of Wealth
    • Clear a Path
  • About
    • Our Approach
    • Our Team
    • Our Difference
  • Who We Work With
    • Individuals and Families
    • Small Business Owners
    • Retirees and Pre-Retirees
    • 401k Plan Sponsors
  • Insights
    • Blog
    • Business Valuation Advisor
    • College Planning Hub
    • Discover How
    • Learning Center
    • Risk Score
  • Client Access
    • Wealth Center
    • Orion

Copyright © 2023 · Bautis Financial · All Rights Reserved · Powered by Mai Theme

Return to top