Is there longevity in your family? Have you been living a healthy lifestyle – no heavy drinking or smoking? If you’ve answered yes to these questions, you’re likely to live a long life. Studies show genetics and a healthy lifestyle can add several years to your lifespan. Now you have to deal with another reality: living longer means your retirement savings may need to last 30 years or more.
Why Life Expectancy Matters
According to the Social Security Administration, upon reaching age 60, on average, men could live another 22 years while women could live 25 more years. Other studies indicate that genetics can account for as much as 25% percent of your chances of living to age 85 or 90. Accurately estimating your longevity enables you to save enough for a lifetime of financial security in retirement. It also comes into play when deciding when to file for Social Security and developing a strategy for TSP withdrawals.
Are Life Expectancy Calculators Accurate?
Test it yourself by using any number of online life expectancy calculators. You’ll likely find they often give different results based on the same information. Most ask you to enter your gender, age, weight and height, and lifestyle choices like smoking and drinking.
There’s one factor that a calculator can’t analyze: your genetics. Studies indicate genetics can account for as much as 20% to 30% of your chance of living to 85. So take a long look at your family tree when estimating your lifespan.
“Studies show female hormones tend to extend a woman’s lifespan by providing a stronger immune system.”
The Gender Gap: Why Women Outlive Men
Across the globe and dating back to the Industrial Revolution, women continue to live longer than men. Studies show female hormones tend to extend a woman’s lifespan by providing a stronger immune system. Male hormones like testosterone tend to decrease immune function and increase the risk for cardiovascular diseases. Other studies point out that female hormones affect women in ways that result in taking fewer risks than men. Meanwhile, male hormones drive risky, aggressive behavior in men.
Living Longer Costs More Money
Recent studies on longevity literacy indicate nearly one-third of retirement investors are underestimating their longevity. Of this group, those aged 55 to 59 are most likely to underestimate how long they’ll live.
Since living longer costs more money, even underestimating your lifespan by two or three years can put you at risk of outliving your money. Connect with an FRC® trained advisor who can help you get a more accurate longevity estimate and develop a retirement savings plan accordingly.
