Longevity’s Effect on Your Retirement
Living to 100 may be seen as a long life now, but according to new studies, it may be the norm in the future. A baby born this morning at St. Charles Hospital is likely to live to age 104.1 There are currently 80,000 centaurians living around the world. In 2050 this number is expected to grow to 1,000,000! Halmark now sells birthday cards for 100 year olds. I mentioned this recently to a client. He stated with a grin, “A majority of cars will always have their blinker on and everyone will eat dinner at 4pm.” Jeanne Calment made it into the Guinness Book of World Records in 2005 for the longest confirmed lifespan, passing away in France at the age of 122.
Most people would probably choose not to live to 122 as they would chose quality over quantity but there are a few regions around the world where it is common to live into the triple digits and do so with grace. Two of these areas include the Nicoya Penninsula in Costa Rica and Okinawa, Japan. For years researchers have studied the people from these areas and they discovered five steps to longevity they have in common. These steps include:
OPTIMISM
These people love life. Their glass is three quarters full and their mantra is that it is not what happens to you but how you respond to it.
THEY ARE ENGAGED
They wake up with passion. Retirement can be dangerous as many people associate themselves to their work. Often people leave their occupation and feel lost. “Why get up in the morning? Who am I? “ It is essential to find something beyond your career that you are passionate about.
ACTIVITY & MOBILITY
The people from these regions average 120 minutes per week of exercise. They are trim and vibrant. In the United States, the average weight for a male in the US went from 166 to 191 pounds- since 1960. Women increased from 140 to 164 pounds. one in three kids are now overweight.
ADAPTIVE TO LOSS
Many people unfortunately never recover from the death of a spouse. One of the reasons researchers believe the people in these regions live longer is they have an ability to respectfully mourn the passing of their loved ones, eventually adapt to the hardship and are then able to move on.
SOCIAL CONNECTEDNESS
It turns out that people actually need people! They feel not having a close friend or confidant effects you as perilously as smoking.
Longevity means planning for retirement will take on more importance than ever before. On average, the cost of living doubles every 20 years. The over-80 population is growing five times faster than the overall population. If we live to 100 rather than 80, the effects of inflation can have a amaging impact on our retirement nest egg.
Many look to Social Security to protect them if there is too much life at the end of their money. In 1950 there were 16 people contributing to the Social Security sytem for every one beneficiary. Today there are only three people contributing for each recipent of this ailing federal pension.2 A couple of generations ago people typically worked for the same company over their entire career. Upon retirement they would receive their gold watch and a few fleeting years later they would not be with us. Social Security was meant to supplement a portion of their retirement during this brief period. It was intended to be a supplemental retirement income source for the minority. Today it has become the primary income source for the majority! For two out of three Americans, Social Security provides at least half of their retirement income. Those ages 85 and older get 80 percent of their income from Social Security.3
If we want to live the life we have always imagined and be independent of a future paycheck, it is imperative to have the mindset that the tougher we are on ourselves today the easier life will be on us later. We must live below your means and save and invest for our future. We could also learn a great deal from our Costa Rican and Japanese friends to have an attitude of gratitude and the realization that we are only as happy as we choose to be.
1The Lancet Medical Journal
2Early Retirement and Social Security Spousal Benefits, Insurance Newscast, May 23, 2007.
3Investment News, 2008.
David Rosell is President of the Rosell Wealth Management in Bend. He is the Past President of the City Club of Central Oregon and a Past Chairman of the Bend Chamber of Commerce. David can be reached at (541)385-8831 or www.RosellWealthManagement.com.
Investment advisory services offered through Rosell Wealth Management, a State Registered Investment Advisor. Securities offered through ValMark Securities, Inc. Member FINRA, SIPC 130 Springside Drive, Ste 300 Akron, Ohio 44333-2431. 800-765-5201. Rosell Wealth Management is a separate entity from ValMark Securities, Inc.
