Longevity and your money

The world’s 65 and older population is expanding rapidly

By Kevin Theissen

According to the most recent population estimates from the United Nations, “1 in 6 people in the world will be over the age 65 by 2050, up from 1 in 11 in 2019. The latest projections also show the number of people aged 80 or over will triple in the next 30 years. In many regions, the population aged 65 will double by 2050, while global life expectancy beyond 65 will increase by 19 years.”

As the world’s longevity revolution continues, by 2100 there may be as many as 25 million centenarians – people age 100 or older – around the globe, according to a source cited by Science Direct.

Longevity deserves more thought than it often receives. It is an essential part of every financial and retirement plan, influencing savings goals, investment choices, and retirement income levels. Yet, people often underestimate their potential longevity.

In the United States, the average remaining life expectancy at age 65 is 19 years, according to the Centers for Disease Control (CDC). Consequently, many people assume they should plan to live to age 84. However, the CDC estimate is an average. Half of 65-year-olds will live beyond age 84.

When it comes to planning for the future, having above average expectations for longevity may not just be a good idea – it may be vital.

Kevin Theissen is the owner of HWC Financial in Ludlow.