Why Do We Set Your Financial Plan to Age 100?
It’s simple: we don’t want you to run out of money before you run out of life.
The average life expectancy for a 40-year-old woman today is 88 years. However, there’s a 1 in 4 chance she’ll live to 96 and a 1 in 10 chance of reaching 100. For men, the average life expectancy is 85, with a 1 in 4 chance of living to 94 and a 1 in 10 chance of living to 98. In fact, 6.2% of men will live to 100. (Source: ONS)
While it’s true that many of us won’t live to 100, the possibility is significant enough to warrant careful planning. Advances in healthcare and technology, combined with healthier lifestyles, mean that today’s generation can expect to live longer than their parents or grandparents. This longevity brings with it an extended retirement period, often stretching 30 years or more.
So, why do we plan for age 100? Because it’s better to prepare for a longer life and adjust if needed than to face the financial strain of outliving your resources.