Minding My Own Business

Forever!!!  At least that is what I tell my children.  They don’t need to be worrying at the tender ages of nine and seven about the life expectancy of their mom and dad.  I plan to continue this charade as they age so that I can make them nervous that I’ll be nagging and telling them what to do for just as long. 

Why am I asking this question you wonder?

Because I don’t want you to run out of money in retirement.  With continuing advances in medicine, health awareness and improvements in lifestyle habits, US life expectancy appears to be on the increase.  The latest data I was able to find comes from the 2004 National Vital Statistics Report produced by the Centers for Disease Control (CDC).  You can play with the data in different display formats here.

Click on the thumbnail to see a graph of the data that I find most beneficial.  Ages shown on this chart are life expectancy remaining in years.  For example, those of you born in 2004 have an average remaining life expectancy of 78 years or so.  If you were 65 you have about 19 years left.  85 year olds have an average remaining time of approximately six years.  These aren’t absolute numbers, just my interpretation of the graph.

Remember, these are average years remaining, so some of you may have more or less time left.  I’m hoping for more myself. 

Another graph in the report showed that approximately 10% of the population can expect to make it to age 90.  Yes 90.  Now 10% may not seem like that big of a deal to you.  Heck 90% of us will be dead by then, right.  But if you make it that far, your family will appreciate your ability to pay your own way.  I personally have done my retirement planning to provide income for my wife and I into our 90’s.  I’m planning to kick the bucket at 92 with her following me two years later at 94.

That may seem like a long shot, but I have a great-grandmother who made it several years past 100, a grandfather who died in his 90’s, a grandmother who left at 89 and another grandmother who is still alive in her late 80’s.  Incidentally, she is the daughter of the great-grandmother who surpassed the century mark.

Planning for almost 30 years of income without working is no small feat.  Obviously the earlier you plan and begin execution the better chance you’ll have of being able to take care of yourself in the out years.

What happens if I die early?  Well the obvious, my kids stick me in a hole in the ground.  But they also will have a nice tidy inheritance as well.

Now all we need to worry about is the cost of health care in our old age and what to do about it.

How many years are you planning for in retirement?

-Jeff

I’m Minding My Own Business, are you minding yours?