Life Expectancy in Retirement – The Ultimate Unknown

When we do financial plans for clients, the biggest planning unknown is how long do they need their money to last. According to a study by J.P. Morgan Asset Management, couples have a 49% chance of one person living to 90 years old and if you are retiring at 65, that means your investments and passive income sources have to support you for almost as long as your working career lasted!

Probability of Reaching Age 80 and 90

According to data compiled by the Social Security Administration:

  • A man reaching age 65 today can expect to live, on average, until age 84.3.

  • A woman turning age 65 today can expect to live, on average, until age 86.6.

And those are just averages. About one out of every four 65-year-olds today will live past age 90, and one out of 10 will live past age 95.

Want to estimate your life expectancy? You can use the Life Expectancy Calculator to get a rough estimate of how long you (or your spouse) may live. Knowing this information can help you make a more informed choice regarding what planning age is ideal.

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