“My mother is running out of money, and I don’t know what to do.”
That’s a line from a recent conversation I had with a close friend whose mother has lived longer than anyone thought possible…
It’s called the “longevity bonus,” and many folks are realizing that it’s anything but a bonus.
This friend’s mother is in her 90s, and except for some mobility issues that require assistance from an aide, she’s in good shape mentally and physically.
She isn’t going anywhere soon. Her 100th birthday is easily in her future.
And what makes her money situation so frustrating is that she and her husband did almost everything right.
He was a successful real estate developer. They saved, invested and planned properly. In fact, they were frugal in many ways.
But despite making the right money decisions, living as long as she has may require she sell her home and move in with her son.
For many people, funding retirement into our 80s is tough enough – even impossible in some cases. So how the heck are we supposed to plan for life expectancies into our 90s and 100s?
It’s sad to say, but living that long will be a problem for most of us… and it’s a problem that’s getting bigger every day.
About half of the people born today in the developed world are expected to live past the age of 100.
This is up from today’s global average life expectancy of 71. Several generations ago, the global average life expectancy was around 40 years. That increase has consequences for healthcare, careers, families, finances and retirement.
If a person like my friend’s mother, who planned and saved, still has to sell her home and move in with her son to survive, what’s in store for the boomers who have done nothing to prepare for retirement?
If you aren’t taking this retirement thing seriously – or if you think the longevity bonus is a gift, not a problem – think again.
The retirement tidal wave that experts have been predicting for 40 years is here, and it isn’t pretty. I’d take a look at your plan… and add 10 years to your estimates.
Source: Wealthy Retirement