🩺 What If Living Longer Doesn’t Mean Living Better?

My mother lived until age 94.  I attribute this primarily to ‘good genes’ because she likely would have lived much longer had she not smoked for years, did not exercise or drink alcohol with gusto.

So, it strikes me that this is a great opportunity to ask a bold question: are most Americans just living too long? And if so, by whose standards?

The main reason longevity risk is not often talked about is that many people underestimate how long they will live or simply ‘Wishful Thinking”. A 2025 Nationwide Retirement Institute survey found that 71% of Americans do not want to live to age 100, citing health and financial concerns.  They just….want to check out. 

However, since actuarial data consistently tells us that the vast majority of people will live past their average life expectancy, we need to ask ourselves about the quality of our life in the last quarter, whether we have sufficient resources for a quality standard of living and what technical and medical support may be needed in our homes to help us with the basic needs of life.  As you may know, relatively few new nursing and senior facilities are being built. Those that exist are filled.  And this is before the majority of baby boomers, some 76 million of us born between 1946 and 1964 - even walk in and ask for a tour!

At Insurex, our partners talk about these issues and provide counsel to companies that provide life and annuity products intended to help with income gaps, and we work with clients to help them with product offerings such as PlanGap ®, one client that meets that need exceptionally well.

Longevity is a sign of progress with medical advances, declines in infectious diseases, improved public health and medical care and overall better nutrition/living conditions. People tend to plan for an average lifespan, but for a 65-year-old couple today, research says one partner will live into their 90’s. So where to begin managing this risk?

Here’s 3 things you can do now to plan for a longer life and manage longevity risk:

1.         Maximize Social Security Benefits. For many, delaying Social Security until age 70 is one of the most effective ways to guarantee higher, inflation-adjusted income that’s guaranteed for life. Always consult with a financial planner who holds a designation from The American College of Financial Services such as the CLU or ChFC about when it may be optimal for you to begin benefits. But debate exists, even among experts.  Some suggest you should apply for benefits well before your “max” entry age because Congress could change eligibility requirements (as it has already done several times by delaying when benefits begin) while others suggest that you should delay your entry point to the last possible moment.  What is best for you may not be the best choice even for a sibling.

2.         Manage Increased Healthcare Costs. Purchasing long term care insurance to help cover the high costs of medical care and assisted living. According to the US department of Health and Human Services, 70% of Americans turning 65 today will need long term care yet most caregiving is at home, a serious burden to families.  If you think it’s expensive now, and it is, just imagine what will happen in the years to come.  These policies are regulated by state agencies. Shop around and ask questions, especially from those now receiving benefits.

3.         Create an investment strategy that evolves with age: Consider investing in a broad basket of companies and sectors from a highly rated company! Consider annuities as part of your plan which can provide a guaranteed Income stream for life, effectively insuring against the risk of running out of money.  Annuities get a bad rap from some pundits, but the vast majority of wealthy individuals with whom we work at Insurex not only ran companies that offered annuities, but they purchased these policies for themselves because of a consistent, guaranteed rate of interest that can last for a lifetime. 

Longevity risk isn’t just about running out of money; it’s about running out of options. For many, the deeper fear is becoming a burden to the very people they hope to protect. By understanding and managing longevity risk early, we give ourselves and our families the gift of independence, security, and peace of mind!