I think Moneygrubber has a point and it is something I have thought about. How many of us have run FIRECALC over and over again looking to be sure we 100% probability of success with various scenarios taking us all the way out to age 95?
According to the CDC, from data that is 10 years old, a white 50 year old male has a 5.4% chance of living to 95. A 60 year old white male making it to 85m only 35% chance. Odds of living to or past age 85 for a while make are not good. It's kind of sobering to read, calculate and contemplate.
As far as having the money for a balcony suite in a nursing home. My experience with all my relatives who have entered such facilities is that either due to pain, immobility or dementia they were no longer able to enjoy the smallest things in life. If your lucky you might still enjoy the taste of food or a conversation with a friend or loved one.
So, whether we admit it or not it seems many of us, myself included are very afraid of running out of money. A fear some say is stronger than death. Does it really make sense to have a plan with 100% probability of success for a less than 20% chance of surviving to that age. Or should we lighten up a little and use 90 to 85%?
Of course if one of our goals is to leave an inheritance for children then planning a 100% to age 95 or even 100 makes sense.
Here is where I found the stats for probability of surviving to a particular age.
http://www.cdc.gov/nchs/data/nvsr/nvsr58/nvsr58_21.pdf