Life Expectancy & Retirement
Alex Purdom, CIM, PFP
Wealth Advisor, Associate Portfolio Manager at CIBC Wood Gundy
How long do you need your money to last in retirement? That depends, at least in part, on how long you are going to live.
Take a look at the chart above. It uses data from the American Academy of Actuaries to show the life expectancy of people aged 65 today.
What do you see?
To me, 3 things jump out:
1.?????? Life can be longer than you think
For a couple in good health, there is a 19% probability (basically a 1 in 5 chance) of at least one partner living to 100.
With the current pace of medical advances, those odds of living to 100 seem likely to increase over time.
Do you have a strategy for what happens if you live to 100? Where will you live? What income sources will you draw on and in what order?
2.?????? Life can be shorter than you think
These days, I hear more and more people talking about the distinction between lifespan and healthspan.
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Lifespan describes the total number of years we live. Healthspan describes how many of those years we have the health and freedom to do the things we want.
How many things are you hoping to do “someday”?
How can you make the most of your healthspan?
3.?????? You’ve got to have a plan
Nothing is certain. Be sure you have the right plan in place to make the most of your money and your time – no matter what the future holds.
Want to talk about your plan?
-- Alex Purdom
CIBC Private Wealth consists of services provided by CIBC and certain of its subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets Inc. Insurance services are available through CIBC Wood Gundy Financial Services Inc. In Quebec, insurance services are available through CIBC Wood Gundy Financial Services (Quebec) Inc. The CIBC logo and “CIBC Private Wealth” are trademarks of CIBC, used under license. “Wood Gundy” is a registered trademark of CIBC World Markets Inc.