Key Takeaways
\nPeople planning to live until age 100 will want to bolster their finances as much as possible.Delaying Social Security until age 70 and working a few extra years will help to grow your retirement savings.A financial advisor can ensure that your assets keep growing even after you retire.You might also consider purchasing long-term care insurance.<\/p>\n
More people are living to 100<\/a>, and that means longer retirements.<\/a> Being able to enjoy a long retirement might sound like a luxury, but it will also stretch your savings, and you may need to adjust your financial plan<\/a> as you age.\n<\/p>\n The Growing Trend of Longevity <\/p>\n Improvements in healthcare and medicine have led to longer lifespans, and the number of Americans living to age 100 and beyond is expected to quadruple in the next 30 years, according to a Pew Research Center analysis of U.S. Census Bureau data.\n<\/p>\n In 2024, there were an estimated 101,000 centenarians in the U.S. By 2054, the number is expected to reach 422,000.\n<\/p>\n “The truth is, living to 100 isn\u2019t rare anymore,” said Joe Petry, founder and certified financial planner at Mayfair Financial. “Thanks to biotech innovation, healthier lifestyles, and good genes, more people are hitting the triple digits. That means your retirement could last 30 or even 40 years\u2014basically, a second adulthood without the 9 to 5.”\n<\/p>\n Financial Planning for a Longer Life <\/p>\n While you may not necessarily be able to accurately predict whether you’ll live until age 100, you want to be prepared if you do. A longer lifespan means you’ll need a larger nest egg for a longer retirement.\n<\/p>\n A study by Nationwide found that healthy, higher-income retirees were significantly more likely to live to advanced ages. The report found that for healthy couples, there was a 20% chance that one partner would live past the age of 100.\n<\/p>\n So if you’re a healthy individual with no pre-existing conditions, you might consider working a few years past retirement age to build up your retirement savings. You may also consider delaying Social Security<\/a> to maximize your benefits.\n<\/p>\n “Every year you wait past full retirement age<\/a> up to age 70, your benefit grows by about 8%,” Petry said. “That\u2019s guaranteed, inflation-adjusted income for life\u2014like giving your future self a raise.”\n<\/p>\n You could work with a financial planner <\/a>to find the smartest way to handle your retirement accounts. They may advise you to convert a traditional IRA or 401(k) <\/a>into a Roth IRA<\/a>, which offers tax-free growth.\n<\/p>\n “As people live longer, strategies such as traditional IRA <\/a>and 401(k) conversions to Roth IRA and planning around Medicare premium brackets become more valuable,” said Byrke Sestok, a CFP at Moneco Advisors.\n<\/p>\n A financial planner can also help you choose assets that continue to generate returns.\n<\/p>\n “A 30-plus year retirement is a long time to reduce the power of compounding returns,” Sestok said. “Today, we advocate for a conservative portion of retirement savings that will fund the next two to three years of cash flow needs and keep the rest of your money working for you.”\n<\/p>\n 78.4 Years<\/p>\n The life expectancy in the U.S., as of 2023.<\/p>\n Healthcare and Long-Term Care Considerations <\/p>\n Reaching your 100th birthday is a milestone, but there is a good chance you’ll need some help along the way. You may need help getting to doctor appointments or assistance with daily living tasks such as eating, bathing, and walking.\n<\/p>\n