The headline is pretty exciting if you look forward to years of travel, reading, golfing, spending time with children, grandchildren and great grandchildren. Unfortunately, many of us will struggle with wondering, “Can I afford to live to 100?”
This blog comes from the MarketWatch article by Susan Shain titled, “Good news: You might live to be 100. That’s also the bad news.” In the article she sources the World Economic Forum (WEF) report that assessed the growing retirement savings gap.
As we all know, many of us are having fewer babies and by 2050 the ratio of workers to retirees will drop from 8 to 1 today to 4 to 1. Couple that with the fact that employer’s aren’t offering pensions and we aren’t saving enough in our employer based savings plans, there is a huge gap around the world in retirement savings as the chart below shows:
The author suggests that near retirees should be planning now so that they are not a burden on their children as they age.
Having these conversations at a young age is so important. This is why we like to have family meetings with our client’s children to educate them on the importance of starting early. It’s important to plan for a retirement that may last longer than you believe is possible. Very few people believe they will live to 100. Jeanne Calment certainly didn’t believe she would live to 122 when she was born in 1875! If you haven’t read her story, it is a great read (https://en.wikipedia.org/wiki/Jeanne_Calment).
This is why I believe the work that we do is more important than ever. I don’t know what the future holds for social security or our healthcare system but if you plan properly you can control your own destiny.
* * * * * * * * * * *
Steve joined Planning Solutions Group in 2015 and specializes in providing comprehensive financial plans to high-net worth individuals and families. During his career he has realized that his true passion is for building long-term relationships with clients and helping them through the various financial challenges they may face. Steve’s mission is to act as a true advocate for his client’s financial well-being. Prior to joining Planning Solutions Group, Steve spent four years as a CERTIFIED FINANCIAL PLANNER™ with Keeney Financial Group in Columbia, MD. He has also had the privilege of working for Convergent Wealth Advisors, Legg Mason and NVR, Inc. Steve currently holds the prestigious CFP® designation and has his FINRA series 7 and life and health insurance licenses. In addition to providing clarity and confidence in all financial matters to his clients, Steve is passionate about giving back to the community. He currently lives in Baltimore City with his new wife and spends his free time rock climbing, travelling, cooking and volunteering with The Associated, a Jewish Philanthropic organization. To email Steve: firstname.lastname@example.org