While the total number of Americans living to see their 100th birthday is relatively low at 72,197, the growing trend toward an increase in centenarians grew 44% from 2000 to 2014, according to the Center for Disease Control and Prevention. This could create quite a challenge for retirement funding.
Recently, U.S. News & World Report offered some tips for planning for such a long retirement in "How to Finance Living Until 100."
The advice includes:
- Delay Social Security Benefits – Every year you delay taking Social Security past full retirement age increases your monthly benefits by 8 percent.
- Be Wary of Inflation – Invest in assets that are either guaranteed to keep up with inflation or have historically done so.
- Get A Pension – If you have a job that offers a pension, then you will have more money to spend during retirement.
- Get an Immediate Annuity – While they are not right for everyone, getting an immediate annuity will allow you to receive regular payments no matter how long you live.
- Draw Down Slowly – When you do retire, be as conservative as possible in drawing down your retirement savings.
It is still unlikely that any particular person will live to be 100. However, it is always good to plan for the contingency that you might be one of the lucky few.
A good estate plan could be helpful for those who become centenarians. And, if you do not live that long, the assets will not be wasted as long as your estate plan appropriately passes the assets on to your heirs.
For more information visit my Wichita KS Estate Planning Attorney website
Reference: U.S. News & World Report (Jan. 22, 2016) "How to Finance Living Until 100."