Life Expectancy in Retirement: The Mistake Many Make at 60

Confessions of a Financial Advisor

The moment often comes while I’m sitting across from a couple in their early 60s.

We’re walking through their retirement income plan, reviewing how long their savings may need to last and discussing what could happen if one spouse eventually needs long-term care.

Then one of them leans back and says:

“Yeah, but I probably won’t live long enough for that to matter.”

That is usually when I pause.

I have heard some version of that sentence more times than I can count.

“Why do you say that?” I ask.

The client shrugs.

“I just don’t think my body will hold out that long.”

So I tell them, “One of my oldest clients lived to be 104 years old.”

That usually gets a reaction.

“Really? There’s no way I would want to live that long.”

And I understand what they mean.

None of us knows how long we have. That is above my pay grade. Only God knows when any of us will pass away.

But I had an opportunity to talk with that 104-year-old client, and I wanted to understand something:

Did he ever believe he would live that long?

He did not.

Not when he was 94.

Not when he was 84.

Not when he was 74.

And certainly not when he was 64.

Yet there he was at 104.

To honor that sweet man’s legacy, I wish more people could have met him.

He was kind. He was engaged with the people around him. He had witnessed multiple generations of his family branch out from the life he and his wife built during their 63-year marriage.

He remained connected to his community and local church for decades longer than he ever expected. Other than significant hearing loss, he was in remarkably good health for someone who had lived 104 years.

Meeting him might have changed the way you think about living that long.

Why Longevity Changes Everything 

So why is it possible that you will live longer than you think? 

1) The “Average” 65-Year-Old Lives Longer Than People Think 

Social Security’s own education materials say the average 65-year-old today will live to about age 85, and many live well beyond that.  

So when someone tells me, “I probably won’t live that long,” I don’t argue with their feelings—but I do challenge the assumption. 

Because planning for a shorter life when you end up living longer is one of the most expensive mistakes a retiree can make. 

2) Life Expectancy Rises with Age  

Survivorship bias is overlooked in longevity. Remember, your last high school reunion? The wall of grayed photos. Those beautiful souls who went before us. 

But if you’re already 60, you’ve already survived a lot of the “average” that pulls those numbers down. Social Security’s period life table data shows remaining life expectancy is still meaningful at 60 and 65.  

A lot of people quote life expectancy at birth like it’s a countdown clock that never changes. We forget the people who didn’t make it. 

And that’s exactly why the people who did make it often live longer than they expected. 

3) Lifespans Are Still Extending—No Obvious Ceiling in Sight 

Stanford researchers reviewing developed-country data found that among people who make it past 65, the “age at death” has been shifting later…about three years later per 25-year period in their analysis. 

In plain English: if you’re planning retirement like it’s 1985, you might be underestimating the runway. 

Where Longevity Hits Your Finances 

So what can you do to ensure you are financially provided for no matter how long you live?  

Inflation: the “Quiet Tax” on Long Retirements 

My grandfather retired at 51 and lived to 93—over a 40-year retirement. 

And if you use the rule of 72, at 4% inflation, prices roughly double about every 18 years. That means a long retirement isn’t just “more years” it often becomes more expensive years. 

What to do about it: 

• Assume your spending won’t stay flat forever. 

• Build a plan that has some inflation-sensitive income (not just fixed dollars). 

• Recheck the plan every year or two, not once a decade. 

Social Security: The “I Want It Now” Decision Can Punish a Long Life 

If you take the rote advice, “I want my money and I want it now”…go right ahead. 

But taking Social Security early just because Joe at the water cooler is doing it—mostly because he’s broke and has no other options—may not be the right move for you. 

What to do about it: 

• Compare claiming ages with both spouses in view. 

• Stress test: “What if one of us lives a long time?” 

• Treat the higher earner’s decision as a survivor planning decision too—because if you pass away first, your spouse may inherit the higher benefit. 

Long-Term Care: It’s Not Just “If I Live Long,” It’s “What if I Need Help?” 

Not only will you live a long time, there’s a chance you’ll have a disability, dementia, or decline where may you need assistance for years. 

This doesn’t mean you won’t still enjoy that decade and be grateful you’re alive. 

But it does mean: Prepare financially so your family doesn’t have to carry something you could have planned for. 

What to do about it: 

• Decide on funding: Should you self-fund or use long term care insurance, or a hybrid approach? 

• Consider potential VA benefits or other available benefits. 

• Discuss the likely sequence of care as a family:  “What happens first?”—home care, assisted living, nursing, or family caregiving. 

The Part I Want You to Hear 

I’m thankful my grandfather lived to 93. 

I’m thankful for my client that lived to 104. 

How sad the world would be if these women and men were taken from us a decade or two decades before.  

So stop wishing that you won’t live to a ripe old age because your grandchildren, your children, and your nieces and nephews would all love to have one more year with you. 

I know I wish I had one more year with those who have already passed. 

If you’d like guidance in exploring your retirement planning options, my team and I are here for you. Schedule a free Discovery Visit with us today. 

COVERING OUR TAIL FEATHERS
Welcome to Swan Capital, LLC (“SWAN”), your friendly neighborhood Registered Investment Adviser (“RIA”). Now, while we may have a fancy title, remember that our registration doesn’t guarantee we’re flying high above the rest. This communication hasn’t been blessed or verified by the United States Securities and Exchange Commission (SEC) or any state securities authority. At SWAN, we believe in giving you personalized investment advice as unique as a swan’s graceful glide. We work with clients in their own states, making sure to play by all the regulatory rules or find the right exceptions. But here’s the scoop: all investments come with risks—like a wild swim in the pond—so no investment strategy can promise profits or protect you from the occasional splashdown. Just remember, past performance is like a cozy old story; it might be nice to reminisce about, but it doesn’t promise what’s coming next. 

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