One of the hottest topics of the day globally, is “longevity.” Thanks to innovative technology and breakthroughs in aging science, we’re already seeing people living to 100 years old and beyond. Look no further than the legendary television producer, Norman Lear, who passed away this past December at 101 — or the 102 year old fashion icon, Iris Apfel, who’s still going strong. And we’re just getting started.
Sergey Young, one of the most passionate believers and investors in the “longevity economy,” has actually put up a prize of $1 million USD for the first person who lives to 123. It is projected that in Canada alone “by 2036, the number of seniors would be more than double the number observed in 2009 and by 2061, their number would vary between 11.9 and 15 million. And, in fact, the number of those aged 65 and older would surpass the number of children aged less than 14 years or under.”
Fascinating, considering we are living in a time of blatant ageism, which is being felt in all aspects of our lives — although most dramatically in our working lives. In fact, “internationally, up to 25% of individuals aged 55 and older wish to work in old age but face barriers to finding opportunities.”
But we do have to change our attitudes, because if we’ll be living well into our hundreds, it is doubtful we’ll be retiring at 65. And there are many reasons for it, including wanting to continue having a productive, engaged and purposeful life and wanting and/or needing to keep earning an income, for as long as possible, to name just two.
Challenging as life is the world over, I have to admit I find the possibility of living as long as Young is predicting astonishing, interesting and thought provoking. But, if I’m going to be completely honest, also somewhat daunting — there is a not-so-little thing called “money” we have to concern ourselves with.
Up until now, retirement planning strategies and even pensions and RRIFS have been based on living to 90 years old. So as it stands right now, would you have adequate savings to live comfortably and safely for an additional five, 10 or more years?
One of the first points made in the report is this: “By 2050, the global population over 60 years old will double to 2.1 billion people. And many could risk outliving their retirement savings by between eight and almost 20 years.” Between eight and 20 years!
And on this topic specifically, Matthew Blake, Head of the Centre for Financial and Monetary Systems, World Economic Forum has this to say:
“As lifespans have gotten longer around the world, financial opportunities for individuals to grow and preserve wealth have not kept pace. Financial institutions must work with governments and civil society to ensure adequate savings, investment and other wealth building opportunities are available to all individuals to support our changing demographic reality.”
What, though, should we be thinking about, considering, planning, changing, adding and doing right now?
We have a lot to discuss, so in this blog post we’ll talk about some of the considerations you might want to include in your thinking, financial planning and strategies prior to making actual investment decisions — making sure you’re preparing properly for longevity, in other words.
Next time we’ll concentrate on wealth, investing, investment choices and whether or not the currently-available investment industry thinking and products are longevity-focused enough.
So please also watch out for our next Longevity blog post to be published here and on our WordPress blog a few weeks from now. If you subscribe to our WordPress blog, you don’t have to do anything — you’ll automatically be notified every time we publish something new.
“What if?” Two of the dullest, most forgettable words in the English language. Or are they?
If the events of the last several years have taught us anything, it’s that nothing is guaranteed. Nothing is certain. We cannot take anything for granted and life can change in an instant. Where you live makes no difference. How much money you have makes no difference. Whether you’re young or old, in good or poor health makes no difference.
Anything can happen to any of us, anytime. At the drop of a hat. So let me ask the question again.
What if?
Are you ready? Are you prepared?
What if you live to 100 or 105, 110, 123? Because you could. Just google “longevity.” I did and there are 144,000,000 results. Longevity is real and it’s already happening.
Has your financial planning, your life planning, your family plans and business plans taken into consideration that you might very well live past 90, and are you prepared in case anything goes awry, or even if it doesn’t, but you suddenly find yourself in a position of having to make decisions about unanticipated occurrences — they don’t have to be bad or unpleasant ones?
It makes me think about the Scouts and their motto, “Be Prepared.” When Lord Robert Baden-Powell, the English soldier who founded the worldwide Scout Movement published it, he meant that Scouts are “always in a state of readiness in mind and body to do your duty.”
I’m suggesting we, too, need to be in a state of readiness to handle whatever life throws our way — especially if 65 is going to be the new middle age.
To quote Zig Ziglar, "Expect the best,
plan for the worst"
… To which I’ll add, “so you can sleep at night.” Stress and sleepless nights do nothing for our health, it’s quite the opposite in fact. Bad health and longevity do not “go together like a horse and carriage.”
For one, where will you live? Can you manage in your home either on your own, or even with some help? Do you have children who will care for you or bring you to live with them?
Long-term care costs are on the rise. If you haven’t considered how long you might possibly live, it begs the question, have you factored into your financial plan, how much money you might need for your long-term care? The costs of home health care and nursing home and assisted living facilities can cost hundreds of thousands of dollars a year. Do you have critical illness insurance, and is it adequate?
This may seem like a silly question, but it is of utmost importance. Is your Will up to date? Does it reflect your current goals, wishes, thinking? Is everyone mentioned in it still living? Do you have a legal document outlining your end of life care wishes? We have options now like DNRs and medically assisted death. Do your doctors have copies? Have you discussed this difficult but critically-important issue with your family?
Do you have a medical Power of Attorney in addition to a Power of Attorney for other matters? If you do, are they still willing and able to accept the responsibility? Ditto for your Executor.
Do you own a business? How long do you want to remain active in it? Do you have children who will take over from you? Do you have partners? Have you discussed a transition plan or whether or not you’d prefer to sell the business?
What about informing your customers? Have you considered how and what and when you’ll let them know what you’re thinking or planning? It may already be concerning them if you’re in your 60s or even 50s and they are feeling like they’re left in the dark.
These are all matters of great importance, and require a lot of soul-searching on your part, frank conversations with your family and business associates and also strategic and consequential discussions with your Investment Advisor, accountant, business lawyer and estate lawyer as well. And don’t forget your doctors. Your health — physical, mental, emotional and cognitive — plays a huge role in how long you might live, what you might need to be safe at home as long as possible and enjoy the best quality of life you can.
There is every reason to believe and expect to thrive if you’re one of the fortunate individuals who live to 100 years old and longer. But you have to be well-prepared. What I’ve shared today is part of it.
Next time we’ll get into the financial side of longevity planning. In the meantime, reach out to me or my partners, Shelly Steidman, Chris Amodeo or Matt Mintzer if you want to talk about this blog post or anything else that’s on your mind.
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