Make Your Money Last: 3 Retirement Essentials as Life Spans Rise
Fazen Markets Research
AI-Enhanced Analysis
Retire Better: Three things to consider to make your money last
Good news: we’re living longer. Too bad most of us can’t afford it. U.S. life expectancy rose in 2025 to a record 79.4 years, up from 79.25 the year before. Women, on average, can expect to live longer than that; men, a bit less. Last Updated: Feb. 13, 2026 at 11:27 p.m. ET
Key takeaway
Plan retirement finances with longevity in mind: assume an expected lifespan of at least 79.4 years and stress-test plans for longer outcomes.
Three practical considerations
1) Longevity buffer: adjust time horizon and withdrawal assumptions
- Quotation-ready guidance: "Assume a baseline lifespan of 79.4 years and model for a longer tail to reduce longevity risk."
- Action: lower an initial safe withdrawal rate or plan for reduced withdrawals after age 80 to protect against outliving assets.
2) Expense sequencing and healthcare funding
- Highlight: longer life increases cumulative healthcare and long-term care costs. Factor rising healthcare spending into retirement cashflow models.
- Action: create a prioritized spending plan that separates essential recurring costs (housing, insurance, medical) from discretionary spending.
3) Portfolio durability and income diversification
- Clear point: extend the planning horizon for asset allocation and include income-focused solutions to cover essential spending.
- Action: test portfolios under multiple market and longevity scenarios; prioritize predictable income sources to cover mandatory expenses.
Quick metrics to include in your planning
- Use 79.4 years as the immediate baseline for U.S. life-expectancy planning inputs.
- Compare current portfolio withdrawal rules against a floor that covers essential expenses well beyond the baseline age.
Final note for institutional and professional investors
Longer average lifespans increase aggregate retirement liability and shift risk management priorities. Practical steps—adjust withdrawal assumptions, prioritize healthcare and durable income, and stress-test portfolios—make plans more resilient without speculative changes to factual baselines.
Sponsored
Ready to trade the markets?
Open a demo account in 30 seconds. No deposit required.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.