The great news is, people (in general) are living longer, healthier lives. The bad news is, those long lives require a good deal of long-term planning, and many of us are not adequately prepared. We’ve known for years that Americans typically do not save enough for retirement, but now that we’re living longer, this persistent problem is only going to get worse.

There’s actually a term for this problem: longevity risk. Experian defines longevity risk as, “the possibility that you will outlive what you have in your investments, savings, pensions, annuities and other sources of retirement income. As you live longer, your retirement income must stretch out over a longer time period.”

As healthcare advances and medical breakthroughs continue, this risk is becoming ever-more likely. And we’re not talking about it as much as we should.

Addressing Longevity Risk

What can you, as an individual investor, do to address longevity risk and adequately plan for a long, healthy future?

1. Consult a Financial Advisor

First (and above all), I would consult a trusted financial advisor. It’s not a good idea to panic and make drastic decisions without first sitting down and discussing longevity risk with a seasoned professional.

2. Think Long-Term

Thinking long-term is always a good idea when it comes to investing, but now you might have to stretch your horizons even further. Consider your asset mix. How risky (and potentially high-growth) or safe (and likely low-growth) should your portfolio be right now? In 10 years? 20 years? A financial planner can help you achieve the right mix of investments.

3. Save Early and Consistently

As the saying goes, the best time to plant a tree was ten years ago; the second best time is now. In other words, if you haven’t been tucking away much money into savings, now is the time to start. Be consistent as possible, potentially automating your contributions so a certain amount is automatically transferred from your checking account into a savings or investment account each month.

4. Consider Delaying Retirement

If you’re able to work for a few more years, consider delaying your retirement. This can give you more time to save and also allow your investments to grow. Plus, if you delay taking Social Security benefits, you can receive higher monthly payments when you do start receiving them.

5. Maximize Social Security Benefits

Maximizing your Social Security benefits can also help address longevity risk. You can collect benefits as early as age 62, but the longer you wait to start receiving them, the higher your monthly benefit amount will be. If you’re in good health and have other sources of income, delaying Social Security payments might make sense for you.

Longevity risk is a growing concern for many investors in the face of longer life expectancies. To address this issue, it’s important to think (very!) long-term and plan accordingly. Remember, you don’t have to do this alone. Any qualified financial advisor can give you plenty of guidance and options to prepare for longevity risk. We work hard to make it to our golden years, and the last thing we want to worry about is running out of money.

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