Will you live to be a Centenarian?

Longevity is being lengthened by biomedical advances, healthier lifestyles and an improved standards of living. Mortality tables are falling out of step with reality, and actuaries are slow to update them. According to economist and professor at HEC Montreal Martin Boyer, and Roland Johnson, vice-president, longevity, at reinsurer RGA Canada, state that “things have changed when baby boomers’ parents embarked on a short retirement at age 65 after a long career working under harsh conditions”. When baby boomers were born, life expectancy was 63 years old. Now life expectancy for those same boomers are in the low 80’s. Mr. Boyer states, “children born in the 2000’s will have a 50% chance of living until age 100”. Along with these changes that are unfolding in these times, it is our approach that needs to as well. With Canadians living healthier longer lives, should the traditional retirement date of 65 be changed? I often hear clients, friends and family state that they would like to retire early as well. Let’s give this some thought.

For those born in the 2000’s you will have a 50% chance of living to 100. At a retirement date of 65, that is 35 years of income that will be required. Retiring at 50, that would be 45 years of income required.

Can you honestly say that you are doing enough for your future self? I believe that life is about living in the moment, but should it come at such a high cost? Balance is key when making financial decisions and I am a true believer of paying yourself first. If you would like to have a personalized conversation related to this topic and see what pace you are on please reach out.