How Longer Lifespans Expose Cracks in Retirement Planning

We are living longer than ever thanks to advances in health care technology, better disease prevention and generally healthier lifestyles. Now the question is whether we can afford to. Did you save enough to afford living until you turn 100?

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Already, research by the World Economic Forum shows that, on average, retirees outlive their savings by over 10 years and for women, this gap even stretches to 13 years, says Kenny Rabson, CEO of Discovery Invest.

Despite this, he points out, most retirement strategies are still based on traditional assumptions from when life expectancy was far shorter and less variable.

According to Discovery data, more than 60% of retirees are expected to live past their life expectancy. In addition, while life expectancy continues to increase, healthspan—the years lived in good health—often lags behind, leaving many people living longer but spending their final years in poor health.

Rabson says to help meet this challenge, Discovery Invest developed the Lifespan Linked Income Plan that gives retirees income flexibility, long-term investment growth, cost-effective longevity protection, and health incentives in one plan.