In this week’s episode of the “Retirement Readiness” podcast, hosts Tim Regan and Katie Umland uncover how longevity planning can support a two-comma lifestyle in retirement (no matter how long you live).
Retirement isn’t just about saving up enough funds (although that’s a key piece). A strong retirement plan incorporates a holistic approach to your life both now and in the distant future. This comprehensive strategy is often called “longevity planning,” and considers your money, health, lifestyle goals, family, and more.
“When we talk about longevity, it really turns into: How do I make sure I have enough money? How do I make sure I have enough healthspan?” Tim explains.
The answers to those questions vary from person to person. For example, Tim’s two-comma life includes staying within driving distance of his adult children and keeping up his health enough to visit often.
But for nearly everyone, a crucial piece of longevity is continuous relationship-building. Tim and Katie note that it’s important to keep your future “brighter” than your past, which involves having conversations and connections with others.
When it comes to the financial aspects of longevity planning, it’s tough to come up with concrete answers (after all, it’s nearly impossible to know just how long you’ll live). However, you can create ballpark estimates for your future income and expenses, and then make room in the margins for potential unknowns. A financial advisor can help you fill in those blanks and account for expenses you may not even have on your radar.
“Your advisor should be able to help you with what we call margin decisions,” Tim says. “For example: I’ve got my money in the right asset allocation, and I’m taking about the right amount of risk, and I’m taking about the right amount of money out – that’s 80% of it.”
Those small movements in your financial plan compound over time, and could make a substantial impact on your overall longevity in retirement. And although your specific longevity plan will be unique to your goals and challenges, there are a few common patterns and fears you can address early on to help set yourself up for success.
Hit play to learn more about the power of longevity planning, and be sure to explore our other “Retirement Readiness” episodes.
Key Timestamps and Topics
- 00:00:35 – What is longevity planning?
- 00:05:09 – The typical “stages” of retirement and common anxieties throughout the retirement journey.
- 00:07:36 – It’s important to consider healthcare costs and budgeting in retirement, but those factors shouldn’t stop you from living your life.
- 00:13:16 – Common fears of retirement, including running out of money, failing health, and the inability to leave something substantial to the next generation.
- 00:14:59 – How physical mobility contributes to longevity.
- 00:17:46 – How can you know if you will outlive your money?
- 00:21:52 – The importance of having ballpark ideas for your future finances, while also accounting for “margin” expenses.
- 00:23:20 – Tim and Katie share updates about their lives and the Easter holiday.
3 Key Takeaways
- Longevity planning involves various factors, including financial stability, healthspan, family relationships, sense of purpose, and more.
- Maintaining physical and mental well-being is essential for enjoying a long and active two-comma life in retirement.
- Common fears in longevity retirement include running out of money, failing health, and the inability to leave something substantial to the next generation.
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