Financial Planning Resources

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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.

A retirement of 30+ years could become the norm, making it essential to have a financial plan that lasts as long as you do.
Dennis Hall, Chartered Financial Planner and Founder of Yellowtail Financial Planning

Preparing for a third of your life in retirement

Imagine a third of your life – 20, 30, or even 40 years – where you’re no longer earning an income. Instead, you’re relying on savings, pensions, and investments to support your lifestyle. It’s not just about having enough money; it’s about knowing how you want to live and ensuring your finances align with that vision.

Have you considered:

  • How you want to live in later life?
  • Where you want to be?
  • What you want to do?
  • How comfortable you’d like to be?

And most importantly: how much will that cost you each year?

Your spending will likely change throughout your retirement. In the early years, you may want to travel, pursue hobbies, or enjoy dining out. Later, your expenses might shift toward healthcare or support services. These variations are why financial planning—and cashflow modelling in particular—is so essential.

This image shows a simple financial planning cashflow

Your cashflow model should run from now to age 100.

Your financial independence number

One of the most valuable outcomes of financial planning is identifying your financial independence number. This is the amount of money you’ll need to sustain your desired lifestyle throughout retirement.

For example, let’s say you want an income of £30,000 per year during retirement. Using a common financial planning rule (the 4% withdrawal rate), you’d need a savings pot of approximately £750,000.

This calculation provides a goal: a clear target to aim for as you save and invest. It also serves as a reality check. Many people discover through cashflow modelling that they’re not on track to reach their number. But identifying this gap early allows us to take action, whether that means adjusting your savings rate, reallocating investments, or rethinking your retirement timeline.

Listen to our podcast: How Much Do I Need To Retire.

Your financial independence number is the key to sustaining your desired lifestyle throughout retirement.

How cashflow modelling helps

Cashflow modelling is the cornerstone of this process. It’s a way to simulate your financial future based on your current savings, expected income, and projected expenses.

Through this exercise, we can:

  • Determine whether your current financial plan will support your desired lifestyle.
  • Identify shortfalls and suggest practical ways to bridge the gap.
  • Adjust for different scenarios, like changes in health, market conditions, or unexpected expenses.

Our clients often describe this as the most enlightening financial advice they’ve ever received. By visualising your financial future, you gain clarity and confidence in your decisions.

Transforming lives through financial planning

Planning for age 100 isn’t just about ensuring you have enough money. It’s about creating peace of mind and the freedom to enjoy life on your terms, for as long as it lasts.

Whether you envision spending your retirement travelling the world, supporting your family, or simply enjoying a comfortable and secure lifestyle, financial planning ensures that vision is achievable.

We plan to age 100 because we’d rather you have the resources to live well for a longer life than risk running out of money too soon. After all, the goal is not just to survive retirement but to thrive in it.

We plan to age 100 because we’d rather you have the resources to live well for a longer life than risk running out of money too soon.

ABOUT YELLOWTAIL

Founded by Dennis Hall, Yellowtail are the trusted financial planners who advise affluent individuals & families in the South West and across the UK. Yellowtail’s experts provide the clarity, control and confidence to guide you through financial planning, estate planning, pension transfers and investment management directing your journey towards a prosperous retirement and financial peace of mind.