Who Wants to Live to 100? Not Most Americans

Naomi Whitehead is the oldest living American at 114 years old, and we’d like to take a peek at her retirement plan.

Reaching 100 is a remarkable feat, but it’s not one most Americans are eager to achieve. More than 70% of Americans say they don’t want to hit the century mark, fearing they won’t be able to afford the cost of longevity, according to a new report from the Nationwide Retirement Institute. However, living longer is becoming increasingly common thanks to medical advances, and for financial advisors, that means preparing clients not just for 15–20 years of retirement — but potentially 35 years or more.

“Most clients tell me, ‘There is no way I will live that long,’” said Jessica McNamee, an advisor with Sirius Wealth Strategies. “I find their certainty fascinating.” 

Are We in a Blue Zone?

The number of American centenarians is expected to quadruple over the next 30 years, per the US Census Bureau. That reality is unsettling for many who fear their bank accounts will run out before they do:

• Some 40% of non-retired individuals plan to delay retirement due to inflation, per the NRI report.
• Even for those who reach 100 with savings, one in five healthy couples will outlive their nest egg unless they adjust their money-management strategy.

The NRI highlighted annuities, long-term care insurance plans, and lifetime income solutions within employer-sponsored retirement plans as enablers of confidence, independence, and dignity for clients. 

Financial Caregiving. Even with money in place, managing it is another challenge. Increasingly, that responsibility falls to younger family members acting as financial caregivers. Over 40% of clients at Wells Fargo, Morgan Stanley, and Ameriprise fit this role, according to market researcher Hearts & Wallets. “It starts off with paying bills, then quickly flows into managing income flows, and segues into handling taxes and insurance,” said Laura Varas, Hearts & Wallets CEO. 

More than half of financial caregivers are open to paying for professional help managing an aging loved one’s finances. “It could be a good way for advisors to build business,” Varas told Advisor Upside, “but it’s also a massive and growing need for US households.”