Senior Financial Planning

Higher life expectancies have impact on retirement financial planning

Thanks in large part to improved technology and medical treatment, life expectancies are now longer than ever, which has changed the way people look at retirement financial planning. Baby boomers and older adults now have to take into account that they will live longer than previous generations and studies have found that many may approach how they handle their money a bit differently.

The results of the most recent Merrill Lynch Affluent Insights Survey reflect the impact longer life expectancy has on retirement planning. Most notably, researchers discovered that 75 percent of affluent Americans would have approached their money management a bit differently had they been aware of the rising life expectancies. Of them, 39 percent would have chosen to work at least part-time during retirement and 37 would have worked with a financial advisor.

"Achieving greater financial security and positive outcomes during retirement is a lifelong challenge solved through insight, planning, shared responsibilities and an array of solutions that can empower you to own the road, instead of the other way around," said David Tyrie, head of personal wealth and retirement for Bank of America Merrill Lynch.

Of course, there are ways to supplement retirement savings other than working later. Life settlements, which pay life insurance beneficiaries a portion of the face value of their policy, have become a more common way to do so.

Census findings seem to back up the belief that people are living longer than ever. According to The Associated Press, the number of people 90 or older in the United States has more than tripled since 1980 and now numbers 1.9 million. Experts believe that figure could reach 8 million by 2050.