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Longevity planning: Future-proofing your finances for the long haul

September 16, 2024 / 6 min read

As life expectancy rises, longevity planning is an essential yet often overlooked aspect of financial planning. Here’s how to turn the challenge of increased longevity into secure and prosperous golden years.

Longevity is a gift. It provides those of us fortunate enough to be blessed with extra years additional opportunities to enjoy life’s pleasures, spend more time with loved ones, and explore new hobbies and interests. However, along with this gift can come an unexpected challenge: having the necessary financial means to comfortably fund those extra years of life.

The reality is that increased life expectancy comes with significant financial implications. Retirement savings need to last longer — potentially much longer than anticipated — and without proper planning, you could outlive your savings, leading to significant financial stress. That’s where longevity planning comes in — and it’s never too soon to start. Whether you’re already retired, approaching retirement, or at the early stages of your career, managing and reviewing your plan will have long-term benefits for you and your family.

What is longevity planning?

Longevity planning is the process of preparing for an extended lifespan. It focuses on creating financial strategies that help you maintain your desired lifestyle for as long as you live. It involves assessing your current financial situation, projecting future expenses, and developing a plan that supports your financial well-being throughout an extended time frame. Financial security isn’t the only consideration. Equally important is your peace of mind. Having a plan in place can alleviate stress and uncertainty, allowing you to fully enjoy your retirement years.

Having a plan in place can alleviate stress and uncertainty, allowing you to fully enjoy your retirement years.

Key components of longevity planning

As with all financial planning, longevity planning isn’t a one-size-fits-all approach. It’s a comprehensive process that involves several key components, each playing a crucial role in securing your financial future.

Strategies for longevity planning

Now that you understand the elements of longevity planning, how can you incorporate them into your plan? Here are some strategies to consider.

Consider increasing your savings rate incrementally each year, especially if you’re still in the early stages of your career.

Start your longevity planning now

Longevity planning is an essential yet often overlooked aspect of financial planning. It’s important to embrace the journey with intention and purpose. Start by assessing your current situation and longer-term goals. Then consult your financial advisor to create a personalized plan based on your income and investments, your spending, and the impact of forecasted inflation and healthcare costs. Revisit your plan along the way and adjust as necessary. Remember, longevity planning isn’t just about numbers — it’s about creating a secure and fulfilling future. Take steps today to build a resilient financial foundation for the years ahead.

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