They say that the only certainty in life is death and taxes. The certainty is death, the variability (risk) is when death will occur. Someone who saved enough to retire on to survive to their life expectancy of 85 may be fine if they live that long (if the expected investment return is realized). If they lived longer than 85, their assets could be depleted. If they lived shorter than 85, they would leave a significant inheritance to their heirs. So, to be conservative, more financial planners are assuming a longer life expectancy to make sure there are enough assets for their clients to live on.
There are many life expectancy calculators out there that will estimate how long you can be expected to live. Yet, each will tell you a different answer due to:
The issue is unpredictability of how long you may live. They key is to understand the range of ages that you may live to so that you can plan your retirement savings accordingly. This is especially true if you are married, because there is a higher probability of at least one of you will live past the age of 90. That is why you may live for the moment but plan for a long haul.
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