Advancements in medicine and technology continue to surge, opening the door for significantly longer lifespans in the future. By 2050, it’s projected that many individuals will live well into their 100s, according to the Pew Research Center. The potential for a long life is exciting, but it also raises important financial considerations.
One major implication of increased longevity is the need for your retirement savings to last for a longer period. Current financial models typically estimate a retirement span of about 20-30 years. With lifespans potentially extending to 100 years or more, you may need to prepare for 30-50 years of retirement.
A longer retirement also means more time for risks to derail your retirement strategy; over the course of your retirement, you are likely to experience changes in tax rates, inflation, and a down market. These risks can deplete your retirement savings sooner than anticipated. You’ll want to include these possibilities as you evaluate your savings strategies, investment portfolios, and retirement planning.
We also need to factor in healthcare costs. While advancements may improve quality of life, the expenses associated with chronic conditions and age-related ailments can be significant. Long-term care insurance could become a necessity for many.
Living longer presents exciting possibilities; it also requires proactive financial planning. First Western Financial advisors can help you prepare for a future that encompasses extended lifespans and increased healthcare costs. With intentional planning, we can create a retirement strategy that aligns with your goals.
Give First Western Financial a call today at 479-845-1230 for a confidential consultation on how we can help you be in charge of your health and wealth throughout your golden years.
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Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Western Bank and First Western Financial are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using First Western Financial, and may also be employees of First Western Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, First Western Bank or First Western Financial. Securities and insurance offered through LPL or its affiliates are:
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