Financial Opinion and Insights

Longevity Risk Now A Major Concern

Jim Lorenzen, CFP®, AIF®

Jim Lorenzen, CFP®, AIF®

Social Security’s estimated life expectancy is 79 years for men and 83 years for women, despite the fact that life expectancy has been rising about 2-1/2 years every 10 years since 1900!   My wife and I have both our mothers living with us – one is 97 and the other is 90!     When it comes to taking care of elderly parents, we’re not alone!  

Some advisors estimate the Social Secuity tables may be off by six or seven years.

With longevity risk on the rise, you would think more pension recipientss would choose the lifetime annuity income option – fewer than 10% do, according to the December issue of Investment Advisor – but, it seems people have other issues they’re concerned about, like health care.

With longevity risk becoming more important, the proper management of retirement assets has never been a more important concern our nation’s elderly – I saw a stat somewhere this past week that indicted 7,000 people are turning age 65 every day!  

Hopefully, they’re getting help from competent advisors.


Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® and an Accredited Investment Fiduciary® in his 20th year of private practice as Founding Principal of The Independent Financial Group, a fee-only registered investment advisor with clients located in New York, Florida, and California.   IFG provides investment and fiduciary consulting to retirement plan sponsors and selected individual investors. Plan sponsors can sign-up for Retirement Plan Insights here.  IFG does not sell products, earn commissions, or accept any third-party compensation or incentives of any description.  Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader.  The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.