Most people would like to live a long life and enjoy a lengthy retirement. Yet, clients often overlook the risk to retirement plans that a long life can pose.
Retirees are living longer, more fulfilling and active lives in retirement. The average life expectancy at age 65 continues to increase, and people who retire today often live for another 20 to 25 years after leaving the workforce. That’s 20 to 25 years worth of living expenses that need to be paid from retirement savings. What’s more, there is nearly a 50% chance that at least one person in a couple who are 65 years old today will live to age 90.1
To live the reitirement they want, clients need to address the risk of longevity to their strategy.
Around half of Americans (48%) in the most recent Allianz Life Retirement Risk Readiness Study* said they worry that they will outlive their money. Another 42% said there is no way they can afford to live decades in retirement.