How long will an average 65 year old American live?

In a study released Monday, the average 65 year old American is expected to live at least 2 years longer than the average 65 year old American did in the year 2000.

The average 65 year old American woman is expected to live to 88.8 years, which is an increase of over 2 1/2 years from 86.4 years, based on the year 2000 study.

The average 65 year old American man is expected to live to 86.4 years, which is an increase of almost 2 years from 84.6 years, based on the year 2000 study.

What are some of the implication of this study?

Average is a key word. Life expectancy statistics mean that half the people will live longer and half the people will live shorter than the published figure. This means that half of the women who are 65 now are expected to live beyond 89, most into their 90s.

If you are well educated, have access to good health care and are a non-smoker, you would be expected to exceed these life expectancy figures. While we all know many people who unfortunately did not live into their 80s, you should be prepared emotionally and financially to live into your 90s.

Are you planning for a financial life into your 90s?

The increase in life expectancy over the past decade is dramatic. Since the 2000 study, life expectancy has increased 10.4% for men and 11.3% for women aged 65 today. This trend will likely increase. The study indicates that it is now becoming more statistically relevant to live past 100. It is becoming less of a rarity.

It is obvious that with better health care, people are living longer. You will need your money to last a long time.

You will need to make good decisions throughout your life and have good financial advice, so you will not outlive your financial assets.

Note: I actually read/skimmed the 76 page report prepared by the Society of Actuaries. (This was a first for me and I dont highly recommend it). The purpose of this report was to update their last study, published in 2000, to provide information to large pension funds to guide their investment obligations. The conclusion of this study is that large pension plans, many of which are already underfunded, will need to increase their pension plan contributions, as their liabilities may be 4-8% higher than they are currently anticipating.

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