If you’ve ever worked with a financial advisor or used an online retirement calculator, you’ve maybe been told something like this: "Plan as if you’ll live to 95—or even 100."
At first glance, that sounds like good news. Who wouldn’t want a long, healthy life?
But here’s the truth: while some people do live into their late 90s and beyond, most don’t. In fact, the average 65-year-old today is expected to live to about 83 for men and 86 for women. That’s longer than it used to be—but not as long as the financial industry sometimes assumes when helping you plan your future.
🧮 Why Does the Financial Industry Overestimate Longevity?
Financial planners often use a “better safe than sorry” approach. They’d rather have you save a little more and spend a little less, just in case you live much longer than average. And to be fair, running out of money is a scary thought.
But sometimes, this approach goes too far. It can lead to people not enjoying their retirement and being afraid to spend money they’ve worked hard to save. Some seniors skip vacations, don’t upgrade their homes for safety, or avoid spending on things that bring joy, because they’re worried about running out of money 30 years from now. Having been in the home care business for approaching 20 years, I can tell you that living well today is equally as important as spending with care.
❤️ The Real Risk? Missing Out on Life
No one can predict exactly how long they’ll live. But we know this: your health and emotional well-being matter right now.
If you’re healthy and independent today, that’s something to celebrate—and invest in. Here are a few smart ways to think about spending in retirement:
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Prioritize experiences and connection. Visiting family, traveling to places you’ve dreamed of, or enjoying a meal out with friends—these are moments that enrich your life.
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Invest in your well-being. Paying for home care, a gym membership, or home modifications can help you stay independent longer and avoid costly medical events down the road.
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Keep a cushion—but don’t hoard. Yes, it’s wise to plan for future care needs. But remember: money is a tool, not a trophy. Use it to build the kind of life you want to live today and tomorrow.
🧘 A Balanced Approach: Plan, Prepare, Enjoy
Financial security matters—but it’s just one piece of a meaningful retirement. True peace of mind comes when you’ve prepared for the future and given yourself permission to enjoy the present.
If you’re unsure how to strike that balance, consider talking with a financial advisor who understands aging and quality-of-life planning, not just investment growth. And if you’re already working with someone, don’t be afraid to ask, “What would it look like if I spent a little more on my health and happiness today?”
You’ve earned the right to live well now, not just someday.
Sources:
CDC
US Social Security Admin
Forbes