How Life Expectancy Can Be The #1 Risk To Your Retirement

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Summary:

[176] – Is the media reporting the wrong average life expectancy in America?

In this episode, Jeremy Keil highlights the importance of understanding life expectancy for effective retirement planning. He distinguishes between period and cohort life expectancy, advising listeners to obtain personalized longevity estimates for better financial decisions. Jeremy also discusses the impact of life expectancy on retirement income, social security, and investment strategies.

Jeremy discusses:

• Why understanding life expectancy is important in retirement planning
• How life expectancy impacts retirement income, social security, and investment strategies
• The difference between period life expectancy and cohort life expectancy
• The updated math on longevity
• Importance of personalized longevity estimates for accurate projections
• And more

How Life Expectancy Can Be The #1 Risk To Your Retirement

Understanding life expectancy or longevity is so important when it comes to retirement planning but unfortunately, it’s often overlooked.

What role does life expectancy have in retirement?

When we talk about retirement, we’re not just discussing a phase of life; we’re talking about a period that could span decades.

That’s why life expectancy isn’t just a number. It’s the bedrock upon which your retirement income, social security benefits, and investment strategies are built.

Get this number wrong, and you might find yourself adrift without sufficient resources.

What is the difference between period and cohort life expectancy?

Knowing the difference between period life expectancy and cohort life expectancy is important when planning for retirement because only one of them is the correct one to use for accurately projecting your longevity.

When we see articles in the media reporting life expectancy, they’re often talking about period life expectancy.

Period life expectancy doesn’t accurately reflect our longevity because it is a snapshot, an average at a specific time, but it doesn’t account for the advancements in healthcare and lifestyle changes that could affect your lifespan.

Cohort life expectancy, on the other hand, is the one you should be paying attention to. It’s a more personalized estimate that considers the year of your birth and projects improvements in technology and medicine that could impact how long you’ll live.

Why do you need a personalized longevity estimate?

We cannot stress the importance of seeking personalized longevity estimates enough.

LongevityIllustrator.org is a great resource to use to help you project your personalized cohort life expectancy, what we like to refer to as longevity.

These tailored projections empower you to make informed decisions about when to retire, how to structure your income, and the best ways to invest. Without them, you’re navigating retirement planning without a map, relying on general statistics that may not apply to your situation.

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To learn more about longevity and life expectancy, check out the resources below!

If you have any questions, feel free to contact us using the contact information provided below!

Resources:

• What You Read About Life Expectancy Is Quite Misleading by Eugene Steurle
• LongevityIllustrator.org
• 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:

• Keil Financial Partners
• LinkedIn: Jeremy Keil
• Facebook: Jeremy Keil
• LinkedIn: Keil Financial Partners
• YouTube: Retirement Revealed
• Book an Intro Call with Jeremy’s Team

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