First the good news -- Our average life expectancy has gone up from 47.3 years in 1900 to 78.3 years today. But for those of us in the latter part of our lives… it gets even better! Since 1940, Americans have gained a little over a year of life expectancy during every 5-year period.
America now has about 53,000 people aged 100 or more, as compared to just 2,300 in 1950. That is a 2,200% increase while the entire country’s population as only doubled in the same period of time.
So the good news is that people are living longer! What’s the bad news?
The bad news is that it costs money to live longer. In the March 2012 issue of Smart Money Magazine they actually broke down the cost of living longer. The numbers are staggering!
Prescription drugs, eating out, utility and home care costs, gasoline and car expenses, health insurance, groceries, taxes, and on and on.
The Average American that Lives to Age 100 Will Spend Over $4 Million (In today’s dollars)
- The average American will spend $1,564,740 by the time they reach age 50
- From 50 to age 81 you’ll need another $1,432,980
- Living just another 4 years to age 85… you’ll spend $157,650 more
- From 85 to age 94… another $315,290
- And a whopping $630,580 from 95 to age 100!
Notice as we age, the amount we spend goes up exponentially? It costs money to age… especially in the area of health care.
Is your financial plan set up for a long, happy life? How long will your money last? What kind of plans do you have in place to take care of health care costs that aren’t covered by Medicare?
All hard questions, but questions that are much easier to deal with now, than if we wait even a few years. If you don’t feel like you have good answers to those questions, PLEASE give me a call. The time we spend together may be the best investment you ever make!