Money and Longevity: Essential Pre-Retirement Insights You Must Know
Check out Jeremy’s latest podcast on retirement planning by listening on “Apple Podcasts” or “Google Podcasts” or read below for Money and Longevity: Essential Pre-Retirement Insights You Must Know.
Summary:
[151] – Can your personal beliefs about money and longevity determine your retirement readiness?
In this episode, Jeremy Keil breaks down the latest research from TIAA on financial literacy, longevity literacy, and retirement readiness. He emphasizes the concept of “longevity literacy” and how it can seriously impact your retirement game plan. His summary highlights the study’s findings, revealing the lack of knowledge about retirement longevity across America.
Jeremy provides guidance and resources about obtaining a personal longevity estimate, the importance of understanding financial literacy, and a brief overview of our 5-Step Retirement Plan to help you better prepare for retirement.
Jeremy discusses:
- Why longevity affects your retirement more than inflation
- Why half of Americans don’t know how to estimate their longevity
- What longevity actually means
- The role financial literacy plays in a successful retirement plan
- A breakdown of our 5-Step Retirement Plan
- And more
Financial Literacy, Longevity Literacy, And Retirement Readiness
What Is Longevity Literacy And How Does It Affect Your Retirement Readiness?
The TIAA did a study on Financial Literacy, Longevity Literacy, And Retirement Readiness where they highlighted that longevity literacy is all about understanding how long you might live during your retirement years. It has a big impact on how well-prepared you are for retirement.
Let’s break down what this means and why it matters with a summary of the report.
One of the interesting findings from the report was that longevity affects your retirement more than inflation. Why would that be? While everyone experiences similar inflation in the US, the large variability of longevity causes it to be a bigger risk than inflation.
Another interesting fact from the report is that half of Americans don’t know how long they could live in retirement. How can you plan for retirement successfully if you don’t know how long of a retirement to plan for? Knowing your longevity affects how much retirement income you’ll need to prepare for.
A resource we like to share with you to help you calculate your longevity and plan for retirement is longevityillustrator.org. You can calculate your longevity, and even your joint longevity if you have a significant other.
Remember, the more you know about longevity, the more prepared you are for retirement.
How Is Longevity Different From Life Expectancy?
When you calculate your longevity, you aren’t calculating your life expectancy.
Life expectancy is the average age that people might live to, based on statistics. It’s not a certain prediction of when you’ll pass away. For instance, if your life expectancy is 80, there’s only about a 4% chance that you’ll actually die exactly at that age. Life expectancy is the middle point among all the possible ages people might reach. It’s a range, not an exact number.
Longevity, on the other hand, goes beyond averages. It recognizes that people can live longer or shorter lives compared to the average.
If you’re planning for retirement with a partner, remember that one of you might live below or above the average. Longevity suggests that planning should account for these possibilities rather than banking on an exact age.
Remember, life expectancy is not death certainty.
Using tools like longevityillustrator.org can help you understand the likelihood of living beyond average and make more informed retirement decisions.
Does Your Family History Dictate How Long You Will Live?
Your DNA is not the sole determinant of how long you’ll live – this is a crucial part of understanding longevity.
Many folks look at their family history and conclude that their lifespan will mimic that of their parents, grandparents, or relatives. However, there’s an important factor at play that often goes unnoticed: medical advancements.
While your ancestors might have lived in times when medical care and lifestyle habits were different, your present reality benefits from significant progress in healthcare, exercise routines, and healthier living practices. For instance, consider the advances made in the past few decades alone. Medicine, treatments, and overall health awareness have significantly improved. Even if family members were affected by health issues in the past, those outcomes might not apply to you because of the positive changes in healthcare and lifestyle.
When it comes to predicting your own longevity, remember that your DNA isn’t the only factor – your lifestyle choices and the advancements in healthcare have a substantial impact.
How Do Your Decisions Have More Impact On Your Retirement Than Politicians And The Economy Do?
Your retirement is influenced by your decisions more than by the actions of politicians or the economy. While politicians and economic trends can impact things like taxes and inflation, the choices you make regarding retirement carry even more weight.
Consider that raising taxes by a certain percentage or inflation increasing doesn’t necessarily have to translate into a negative effect on your retirement, provided you’ve taken proactive steps. Your choices regarding Social Security, for instance, can lead to differences of up to 76% in the benefits you receive.
You have control over when you retire, how much you spend, and how you invest your money, unlike the influence politicians or the economy wield.
Feeling in control often leads to better preparedness for retirement. When you educate yourself and make informed decisions, you allow yourself to take control of your retirement and financial future.
What Is Our 5-Step Retirement Plan?
Our comprehensive five-step retirement plan is designed to empower you to take control of your retirement journey and make informed decisions that align with your goals.
The first step is understanding how much you’ll spend in retirement, encompassing factors like living expenses, taxes, healthcare costs, and your anticipated retirement duration.
Next, we focus on how much income you’ll generate during retirement. Even after you stop working, various income streams such as Social Security, pensions, annuities, and real estate can play a vital role in maintaining your financial security. Optimizing these income sources can maximize your spending power in retirement.
The third step involves strategic tax planning. You have the ability to shape your tax burden by making decisions like timing withdrawals and optimizing your Social Security strategy. Minimizing taxes during your retirement years allows you to retain more of your hard-earned money.
After addressing spending, income, and taxes, the fourth step delves into investments. While investments are important, they should be aligned with your overall retirement strategy. By assessing your risk tolerance and investment decisions, you can strike a balance between growth and stability.
Lastly, the fifth step centers on legacy and risk management. Addressing potential risks and considering your legacy plans ensures that you and your loved ones are protected, regardless of what the future holds.
Our five-step retirement process can help you make well-informed choices at each stage, providing you with the confidence and control to enjoy a fulfilling retirement. For more detailed information about each step, visit fivestepretirementplan.com, where you can access the 5 videos that guide you through the process.
___________________________________________________________________________
To learn more about financial literacy and longevity, check out the resources below!
If you have any questions, feel free to contact us using the contact information provided below!
Resources:
- TIAA Report: Financial Literacy, Longevity Literacy, And Retirement Readiness
- Longevityillustrator.org
- Retirement Revealed: Social Security
- Free Retirement Planning Video Course: 5stepretirementplan.com
- 3 Things You Should Know Before Choosing A Financial Advisor
- 7 Questions That Could Make or Break Your Retirement
- Subscribe to Retirement Revealed on Google Podcasts
- Subscribe to Retirement Revealed on Apple Podcasts
Connect With Jeremy Keil:
- 262-333-8353
- Keil Financial Partners
- LinkedIn: Jeremy Keil
- Facebook: Jeremy Keil
- LinkedIn: Keil Financial Partners
- YouTube: Retirement Revealed
- Book a call with Jeremy
===
Disclosures
Videos/Podcasts/Blogs (media) published prior to June 30, 2025, were recorded and approved while the advisor was affiliated with Thrivent Advisor Network. These media reflect the advisor’s views and interpretations at that time. The information and disclosures contained in those media were believed to be accurate and complete as of the date of recording, but may not reflect current market conditions or Alongside, LLC, policies.
All content is provided for educational purposes only and does not constitute personalized investment advice. Read below for current disclosures and potential conflicts of interest.
This media is provided for informational and educational purposes only and does not consider the investment objectives, financial situation, or particular needs of any consumer. Nothing in this program should be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell, or hold any security or to adopt any investment strategy.
The views and opinions expressed are those of the host and any guest, current as of the date of recording, and may change without notice as market, political or economic conditions evolve. All investments involve risk, including the possible loss of principal. Past Performance is no guarantee of future results.
Legal & Tax Disclosure
Consumers should consult their own qualified attorney, CPA, or other professional advisor regarding their specific legal and tax situations.
Advisor Disclosures
Alongside, LLC, doing business as Keil Financial Partners, is an SEC-registered investment adviser. Registration does not imply a certain level of skill or expertise. Advisory services are delivered through the Alongside, LLC platform. Keil Financial Partners is independent, not owned or operated by Alongside, LLC.
Additional information about Alongside, LLC – including its services, fees and any material conflicts of interest – can be found at https://adviserinfo.sec.gov/firm/summary/333587 or by requesting Form ADV Part 2A.
The content of this media should not be reproduced or redistributed without the firm’s written consent. Any trademarks or service marks mentioned belong to their respective owners and are used for identification purposes only.
For important disclosures visit: http://keilfp.com/disclosures
===
Share:
Listen to Retirement Revealed on:
