Living to 100 would change financial planning for affluent
By Lauren McNitt
ProWEB Wire (Industry News)
If affluent Americans knew they were going to live to age 100, many would take a different approach to their financial planning.
According to the Merrill Lynch Affluent Insights Survey, 58 percent of Americans have a positive view of the prospect of living to 100. Yet, 3 in 4 say they would approach their financial planning differently if they knew they would live to 100.
Nearly 40 percent would work at least part time in retirement if they knew they would live that long, while 32 percent would contribute more to their retirement savings plans. A quarter would retire closer to age 85 than 65, and 32 percent would invest in a lifetime income product, such as an annuity. Twenty-nine percent would purchase long term care insurance.
The likelihood of living to 100 is increasing, according to Census Bureau statistics. The number of people living to age 100 rose from 2,300 in 1950 to nearly 80,000 in 2010. The Census Bureau expects that number to exceed 600,000 by 2050.
When asked about their primary cost concern for retirement, 79 percent of survey respondents cited health care costs. Nevertheless, 62 percent of respondents over age 50 said they had not estimated their health costs in retirement yet.