Combat the Crippling Cost of Longevity
Editor’s Note: This was a historic week for our country. And it’s getting me excited to debate “What’s Next for the ‘American Dream’” with my fellow Oxford Club editors at the upcoming Investment U Conference. If you haven’t snagged a ticket, click here to get your early bird discount. It includes a $250 credit for golf and spa treatments at our venue, The Vinoy Renaissance St. Petersburg Resort & Golf Club.
We’re really pulling out all the stops this year. But I can’t guarantee that tickets won’t sell out FAST. Secure your seat today.
This week’s “Slap in the Face” Award goes out to all of you who are still putting off retirement savings.
You’re making the biggest mistake of your life.
So this week, I’m talking about some new longevity numbers that should get your attention.
Japan’s Misao Okawa, the woman believed to be oldest person in the world, died this year at the age of 117.
“So what?” you say. “Most of us won’t live that long…”
Really? Well, I’ve got news for you…
Between 2000 and 2014, the number of 100-year-old people in the U.S. increased by 44%.
But between 2008 and 2014, the mortality rate of our nation’s oldest demographic really dropped off.
In those six years, 14% fewer women and 20% fewer men died after hitting 100.
The explanation? Fewer deaths from heart disease, strokes and respiratory problems like influenza and pneumonia. Between 2000 and 2014, deaths from those diseases decreased by 24%, 31% and 48%, respectively.
A 48% drop in just 14 years!
If our parents (the folks currently living to be 100-plus years old) are living this long, how long will the baby boomers live?
Living to a ripe old age seems like a good thing – none of us wants to die young. And it can be positive if you can financially sustain 30 or 40 years of retirement…
But most of us can’t.
If you can rely on your family to take care of you when your health fails or starts to really go downhill, you’re lucky.
The fact is most of us will live a lot longer than we ever thought possible or planned for.
In the U.S., the number of 90-year-olds has almost tripled since 1980, and that number will increase to more than 7.6 million over the next 40 years.
Living longer costs a lot of money… money that the vast majority of us don’t have.
This is really happening, and I promise you, it will not be pretty.
It doesn’t matter how old you are, how long you have put off saving or how much you can afford to save. You’ve got to “get on the stick” or get ready to live at or near poverty level in old age.
And that’ll be an old age that could go on for what’ll seem like forever.
Living 30 years at poverty level is no joke.
And if you’re banking on the government getting its act together and fixing Social Security, think again. If you think you’ll just be able to coast on your $1,350 monthly Social Security check, you’re lying to yourself.
Anything you can put aside, starting today, will be better than relying entirely on a government that has already proven (to those willing to see the facts) that it can’t or won’t deal with the problems we face.
And these are problems we’re going to continue facing for a long, long time.