Are You Financially Ready to Live to 100?

Colleen Oakley

live to 100Three of my great-grandmothers lived into their late nineties. And my two grandmothers are both 86—and in great health. So barring a tragic accident, my gene pool suggests that I have a good shot at a long life.

And it turns out that I’m not the only one.

According to the Social Security Administration, one in four 65-year-olds will live past 90—and one in 10 will make it past 95! And with scientists continuously uncovering more and more secrets behind longevity, it’s possible that today’s 20-year-olds will live even longer.

It’s great news for people who, you know, like living. But it’s also a frightening prospect to contemplate that the money you retire with at 65 might need to last you for 35-plus years. That’s why we spoke with financial experts to get the lowdown—decade by decade—on how to properly plan for a lengthy life, so you can celebrate your 100th birthday in style and financially worry-free.

The Race to 100: Run Your Retirement Numbers

The first thing you should consider doing, whether you’re 25 or 65, is a retirement calculation, which helps you to determine a ballpark figure for how much you need to sock away for those golden years, says Nancy Anderson, a Certified Financial Planner™ with LearnVest Planning Services.

“When you run the calculation, plug in age 90 or 100 as your life expectancy,” Anderson says. “And be sure to repeat the calculation every year.” Why? Because you might need to adjust the amount of money you’re saving, based on changes in your income or living expenses—variables that can change from year to year.

Once you’ve figured out that number, it’s time to look at the key things you should think about doing each decade of your life to help reach that goal. And, as you’ll see, there are plenty of tricks that you can do—regardless of age—to help get you to that “I’m going to live to 100″ retirement figure.

  • Nate

    If you wait till you are in your 60′s to scale back your way of life and pay cash for larger items you’re only doing this out of desperation to sort of make it through the rest of your years; begin these habits in your teens and you will absolutely be set for life. You can also save yourself a lot of headaches by paying cash for cars, including high end cars so that you don’t have to downscale later.

    Don’t start good money habits later in life. Develop good habits early and you will win in the long run.

  • Diane Terry

    What happened to the 70′s thru 100?