Do you know what ‘longevity literacy’ is?
Longevity literacy is the understanding that people are living longer — yes, you! — and that as a result, retirement planning needs to be adjusted to account for this extra time.
It’s important to recognize that people are living longer than ever before. In fact, life expectancy has increased by 10 years since 1950, and we’re adding one month for every year that goes by. This means that if you’re planning for retirement, you need to think about how much money you’ll need to support yourself for a longer period of time.
The first step in longevity literacy is awareness. You need to be aware that you’re likely to live longer than your parents or grandparents did. This means that you need to plan for a longer retirement, and you need to start planning earlier. You should be saving as much as you can, and you should be investing your money in a way that will help it grow over time.
Another important aspect of longevity literacy is realizing that you may have to work longer than you had planned. If you’re planning to retire at 65, for example, but you’re in good health and you enjoy your work, you may want to consider working a few more years. This will give you more time to save money, and it will also provide you with a sense of purpose and fulfillment.
Planning for healthcare costs is another important aspect of longevity literacy. Healthcare costs are rising at a rate that’s double the average inflation, and they go up as we age. This means that you need to plan for healthcare costs in retirement, and you need to make sure that you have enough money to cover these costs.
One of the biggest misconceptions about retirement is that Medicare will cover all of your healthcare costs. However, this is not the case. Medicare only covers about 60% of your healthcare costs, and it doesn’t cover things like vision, hearing, and dental. This means that you need to plan for these costs, and you need to make sure that you have enough money set aside to cover them.
Finally, it’s important to work with a financial advisor when planning for retirement. A financial advisor can help you understand your options, and they can help you create a plan that will help you achieve your retirement goals. They can also help you adjust your plan over time as your circumstances change.
Listen to this episode of GRUFFtalk, where guest Cyndi Hutchins — Director of Financial Gerontology at the Bank of America — takes a deep dive into longevity literacy and why it is an important aspect of retirement planning.
LISTEN TO THE EPISODE HERE
WATCH IT ON YOUTUBE HERE.
Here’s a little bit about Cyndi:
Cyndi Hutchins is the Director of Financial Gerontology for Bank of America. She’s had more than 35 years of experience in the wealth management and retirement industry, working closely with financial advisors to provide training, education, resources and thought leadership to engage clients on the topics of aging, longevity, retirement and planning for the rest of your life.
Learn more about longevity literacy and financial planning:
Read a report from the Global Coalition on Aging here.
Read about the business of longevity here.
Connect with Cyndi Hutchins: