While the standard retirement income planning rule of thumb is the 4% Rule, now that we have better longevity data, Medora Lee suggests in USA Today ([email protected]), it might be better to have a more tailored plan, based on:
- your health
- your potential lifespan
- your family history.
Considering those items, Lee explains, might help ensure you’re both enjoying your money and making it last through retirement.
Whether going so far as to sign a release of your HIPAA medical records, allowing insurance actuaries to match your specific health condition with a longevity database, even just using online health self-tests as a starting point, individuals can more accurately estimate the time span over which their nest egg will need to provide financial support.
Your physical health has a direct impact on your lifespan, which in turn affects how long your retirement savings need to last, the authors of Seniors Blue Book agree. “If you maintain good physical health, you’re likely to live longer and will need a more extensive plan regarding your assets, for your longer life.” In your estate plan, it’s crucial to not only make sure you’re financially covered for the possibility of Alzheimer’s, dementia, or other conditions, but to also ensure you’ve made it clear how you want to be cared for, if you cannot make decisions for yourself.
At Geyer Law, we know that whether individuals are creating a new plan or updating their current plan, health concerns and life expectancy must be taken into consideration. One of the most significant impacts of the fact that life expectancies are so much longer involves the challenges of funding one’s own current and potential health care needs.
“What you don’t know can’t hurt you” is a proverb that means if you don’t know about something, you can’t be harmed or blamed for it. Now, with all the advances in data technology, what we do know can help us!
– by Ronnie of the Rebecca W. Geyer & Associates blog team
