The biggest risk retirees face is outliving their assets –spending too much or saving too little for their golden years,which are potentially a lot longer than many might expect.
According to a new report from Wells Fargo Investment Institute,citing government data, the average life expectancy for a65-year-old man today is 84.3 years and for a 65-year-old woman86.6 years, and those numbers are expected to grow. By 2030, nearlyone in five U.S. residents is expected to be 65 or older, accordingto the report Living Longer, Living Better.
Given this “longevity risk,” coupled with the declining ratio ofworkers to retirees to fund Social Security and Medicare anddeclining market growth rates, “it's imperative to develop anappropriate and realistic plan” for a “potentially longerlifespan,” according to the report. Here are some of its keyrecommendations for advisors and their clients to develop instead a“longevity dividend”:
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Bernice Napach
Bernice Napach is a senior writer at ThinkAdvisor covering financial markets and asset managers, robo-advisors, college planning and retirement issues. She has worked at Yahoo Finance, Bloomberg TV, CNBC, Reuters, Investor's Business Daily and The Bond Buyer and has written articles for The New York Times, TheStreet.com, The Star-Ledger, The Record, Variety and Worth magazine. Bernice has a Bachelor of Science in Social Welfare from SUNY at Stony Brook.
