Thanks to medical advancements and healthier lifestyles, Americans are now living older than ever before! 👴🏼 Hey, if Mick Jagger can have a new baby at 73, anything’s possible. 🤘
But here’s the twist: living longer also means spending more money. 💵 If you want your finances to stretch as long as possible, you might need to make some key adjustments. 🤔
Here’s Five Fast Facts on the financial impacts of living longer:
- 👵🏾 Three Digit Darlings - According to data from the Pew Research Center, there will be around 422,000 Americans aged 100 or older. That’s four times as many as the 101,000 tallied up in 2024. This age group currently makes up 0.03% of the U.S. population and in three decades, it’s expected to reach 0.1%.
- 💼 Labor of Love - If the 100 plus club doesn’t have enough saved by retirement to last their longer lifespan, they’ll likely have to work longer. By 2032, it’s estimated that 25% of men and 17% of women aged 65 and older will still be in the labor force. Compared to 2022, that’s up from 24% and 15%, respectively.
- 💸 Millionaire Mindset - Americans believe they need $1.46 million to retire comfortably in today’s world. That figure is up 53% since 2020 and up 15% from last year’s estimate of $1.27 million.
- ⏳ Time is Money - Working longer might be a Debbie Downer, but experts say delaying retirement for just a few years can make a big difference. Retiring at 68 instead of 65 will yield you more income, which means more money for your 401(k), less tapping into your savings, and deferral of Social Security benefits.
- 📑 Golden Game Plan - Annuities are another option to help the older population prosper financially in their golden years. Purchasing an annuity provides a guaranteed monthly income, like Social Security payments. Part time work is also becoming more common, with many elderly folks taking up consulting work and remote gigs to bring in more cash flow.
🔥Bottom line: We all want to live as long as possible. If only money grew on trees, right? With a little bit of extra planning, you can set yourself up for a financially secure life in your 100’s. Money’s a huge source of anxiety for many Americans. Just how crazy are we? Check out the latest stats here!
Do you plan on delaying your retirement to save more?
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