Blues legend Albert King once observed, “Everybody wants to go to heaven, but nobody wants to die.” In our post-COVID 21st century world, it might be more accurate to say, “Everybody wants to live a long time, but no one wants to know how much that might cost.”

Many people say they want longevity. And why wouldn’t they? If a person is in good health and has created reliable income streams for retirement, living longer is an attractive proposition.

Approximately half the United States population will live longer than the average life span. Unfortunately, a lot of those people are ill- prepared for the consequences associated with a longer life.

In 2013, the math nerds over at the American Association of Actuaries published a report entitled “Risky Business: Living Longer Without Income for Life” that outlined just some of the risks associated with living too long.

The report outlined some of the most obvious risks of living too long without adequate planning. These risks include:

Outliving income provided by assets- Outliving income will result in a retiree becoming reliant on Social Security for income, having to go on public assistance, or turning to family and friends for help. Most seniors want financial independence in their later years, so creating an income plan is critical if they’re going to achieve that independence.

Risks of poor asset performance- While it’s fantastic when seniors have managed to put together healthy, balanced portfolios, it’s challenging to predict how those assets will perform once retirement time arrives. Best-case scenarios contemplate the optimum performance of assets. Unfortunately, that doesn’t always happen. Stock market volatility remains a clear and present danger to your wealth. Health care cost increases. In years past, if a person could squeak by on health care issues until they reached 65, they could count on Medicare. State and national deficits, a glut of people turning 65, and healthcare system weaknesses exposed by the pandemic will almost certainly require changes to Medicare now and in the future. Staying healthy in retirement is going to cost more than ever before.

Inability to manage finances as we age- A lot of people forget that as humans grow older, we tend to lose some cognitive function. That means as time goes by, many people are unable to manage their finances actively.

Difficulty in living within a budget. Even the most well-thought-out budget cannot anticipate all of life’s curveballs. That’s why many retirees report stress when attempting to adhere to a strict budget. Going over budget, even occasionally, causes shortfalls in income that often can’t be addressed.