In survey after survey, pre-retirees across the nation say their top concern about retirement is outliving their money. Then again, as discussed in Understanding How Longevity Impacts Your Retirement, over 50% of American adults have no idea how long people tend to live in retirement.
Though it’s not much fun contemplating your own death, planning for longevity is an essential component of retirement planning. Why? Because there’s a big difference in the amount of savings it takes to live comfortably during a 20-year retirement compared to a 30-year retirement.
2024 Average Life Expectancy In The US*
According to United Nations projections, the average life expectancy in 2024 is age 79.25 which is a significant increase when compared to the 2020 average life expectancy of 78.99 years old. When projections are extended just 10 years longer to 2034, the average life expectancy rises to 81.11 years of age.
On one hand, living a year or two longer than you originally estimated may not seem like a huge difference. Then again, when you consider your nest egg will have to last one or two years more, it’s clear: living longer is going to cost more money. And the longer you live, the more likely you’ll need long-term care that’s not covered by FEHB or Medicare.
“That’s why it’s a good idea to look at your family tree when estimating your lifespan.”
How To Estimate Your Life Expectancy
The Social Security website offers a life expectancy calculator that shows you the average number of additional years you can expect to live, based on your gender and date of birth. You can find other calculators online that ask for additional information like your weight and height and lifestyle choices like smoking and drinking.
However, there’s one factor calculators can’t analyze: your genetics. Studies indicate genetics can account for as much as 20% to 30% percent of your chance of living to 85. That’s why it’s a good idea to look at your family tree when estimating your lifespan.
The Gender Gap: Why Women Outlive Men
No matter what your personal life expectancy may be, it’s far better to over-estimate than take a chance on outliving your money when you need it the most: in your later years. Connect with an FRC® trained advisor who can help you plan for financial security that will last a lifetime.
*www.macrotrends.net/global-metrics/countries/USA/united-states/life-expectancy
