Longevity risk is not what you may think

[meierlde]

OK..So we live to be 90+ What all these articles fail to understand or articulate to the reader is that your money needs decline after a certain point.

It is my belief that the most active spending is going to take place before 75. Most of the relatives and people I have known have greatly reduced their spending by that point in life. The energy levels are typically zapped, arthritis and other ailments of aging have started taking their toll. If you haven't already traveled and seen all that you want to at this point, you probably never will. Your desire to redo the bath or kitchen is probably gone as well. So your needs are likely to be for only basic necessities of life.

So your need for money has diminished to tv dinners and cable bills.

Spending needs decrease until your last year when medical expenses start climbing rapidly as the body more or less wears out.

 

[harley]

I'll need to save a small amount for later in life. DW and I were in the Costco liquor store yesterday, and I saw a $3000 bottle of brandy. I told her the only way I'd spend that much on a bottle of liquor is if I get to the point where I'm so old and sick that I'm going to take a bunch of pills and check out, I think I'll wash them down with a bottle of that. She said that with my luck I'd throw up both the expensive booze and the pills, then have to shoot myself for wasting that much money.

 

[NW-Bound]

Your wife is mean!

 

[Fedup]

I think she doesn't want him to waste money.

 

[ls99]

I'll need to save a small amount for later in life. DW and I were in the Costco liquor store yesterday, and I saw a $3000 bottle of brandy. I told her the only way I'd spend that much on a bottle of liquor is if I get to the point where I'm so old and sick that I'm going to take a bunch of pills and check out, I think I'll wash them down with a bottle of that. She said that with my luck I'd throw up both the expensive booze and the pills, then have to shoot myself for wasting that much money.

She is a realist.

 

[Live And Learn]

OK..So we live to be 90+ What all these articles fail to understand or articulate to the reader is that your money needs decline after a certain point. <snip>.

So your need for money has diminished to tv dinners and cable bills.

Not sure about this. Once I hit 70 I plan to start hiring people to do alot of things I do myself today (house cleaning, yard work, repair work, etc). I may even hire a part time driver.

ETA: I didn't see Youbet's post before I posted. Totally agree !

 

[Souschef]

I agree about hiring people. I recently had a rotary vent added to the roof of my shed. I hired a 20 something man to do it.
But 70 is the new 50. I am 78, and I drive and fly.

 

[boatfishandnature]

Just to add a bit of data to the discussion:
https://www.ssa.gov/oact/STATS/table4c6.html

 

[Chuckanut]

I'll need to save a small amount for later in life. DW and I were in the Costco liquor store yesterday, and I saw a $3000 bottle of brandy. I told her the only way I'd spend that much on a bottle of liquor is if I get to the point where I'm so old and sick that I'm going to take a bunch of pills and check out, I think I'll wash them down with a bottle of that. She said that with my luck I'd throw up both the expensive booze and the pills, then have to shoot myself for wasting that much money.

Interesting. I would not spend $3000 on a bottle of brandy, but if I did it would be now when I am still in good enough healthy to enjoy every expensive sip. Better, I would spend the $3000 on good times with a good woman, to heck with brandy.

 

[googily]

As a widow (50) with no children, my real goal is to spend every penny. [emoji4] But while I have never expected to see 90, the people who I was sure would live that long (mom, DH) didn't get anywhere close, so I now fear I'm going to even out the family average by sticking around way too long.

 

[OldShooter]

... What all these articles fail to understand or articulate to the reader is that your money needs decline after a certain point. ...

Probably true, but health and inflation are the wild cards.

I am looking at it a little differently: I believe that much of our spending can be managed, so if inflation gets too bad or if investments don't yield what we expect, we can cut back fairly easily. For example, in 2016 we spent about $40K on travel and about $25K charitable. Totally discretionary. We have three vehicles, her car, my car, and my truck. So we go down to two. We have a lake home with taxes and other expenses of maybe $10K a year. That's been a good investment and we would be very reluctant to lose it, but if necessary we can sell it to cut off the costs and pick up several hundred $K in proceeds. So (1) we have been phenomenally lucky and (2) we have a lot of flexibility going forward. I don't worry about how long we'll live.