Just like insurance carriers underwrite before providing products affected by a plan holder’s life span, you should also do your research before you buy these products and make decisions involving your finances. Here are some things you should consider when planning your retirement while taking the effects of life expectancy into account:
Pension payments in the form of annuities give you options on how you want to receive your income. Expecting to live beyond the average age? Take a lifetime guaranteed payout. If you’re thinking you’ll live a shorter lifetime than average, you can go for a lump sum payment or term-certain. You can also approximate your spouse’s life expectancy and choose what’s best for your joint lifetime income.
Health history isn’t considered by Social Security when it comes to the benefits you’ll receive at retirement. You’ll get the same amount whether you live longer or shorter than the average life span, but approximating your own life expectancy can help you use the system to your advantage.
Get a custom report on your life expectancy before deciding on cancelling or keeping a life insurance policy. There’s a lot of money on the line in this case, so do your research prior to making a decision with potentially drastic consequences.
Protection from Inflation
You’ll be more affected by the effects of inflation on your purchasing power if you expect to live longer. Healthy and active retirees often need the most inflation protection, such as that provided by inflation riders for insurance that involves long-term care. Shorter life expectancies generally make these unnecessary.
Your life expectancy is a significant factor that you should consider when planning your retirement income. Investments, pension plans, and the effects of inflation are just a few things seniors should take into account for retirement planning, whether he or she expects to live longer or shorter than average. Contact your health care provider to help you determine your expected life span, and work with your financial planner to create financial plans based on your life expectancy for a solid retirement plan and a well-protected nest egg.
Puritan Financial Group has years of experience in dealing important financial decisions. Puritan Financial Group will listen to you and your loved ones and craft a custom financial solution that supports your life goals.