Yet Another Retirement Risk You May Not Be Considering

by John Rubino
Dollar Collapse

The most common retirement plan involves making some reasonable investment-return assumptions and then structuring your annual spending to run your nest egg down to zero at age 90 or thereabouts. Ideally, you spend your last dollar on the day you take your last breath.

This works, at least in general terms, because relatively few people live into their 90s. But — in a world where everything else is changing — how solid is that lifespan assumption, and how would its extension affect the typical retirement plan? Consider the mixed feelings of an 85-year-old (and his or her family) if a pill comes along that adds an extra 20 years to life expectancy — without adding a commensurate amount to the recipient’s net worth. In return for those extra years, our hypothetical retiree has morphed from “sunset of a well-planned life” to “massive long-term burden on family and/or taxpayers”.

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