Learn the best ways to avoid stressing about funds during a long life, helping you maximize the joy you’ll get out of all of your days.

Always had a hunch you’d become a nonagenarian? That hunch might be more possible than you realize. Americans who make it to age 65 are living longer lives than ever—1 in 4 current 65-year-olds will live past 90, and one in ten will live past 95. 

It’s exciting to look forward to the milestones those years will bring. But knowing that you may live longer than the generations before you did might also have you rethinking your retirement planning. Do you know if you’ll be covered financially for a retirement that could be decades long? Checking out your Retirement Score at Silvur is a great way to see how long your current level of savings can carry you into the years ahead.

If you’re not feeling totally financially prepared to enjoy those years or fund the care you could potentially need during that time, Silvur’s got all info you need to make sure you’re ready for your 100th birthday bash and beyond:

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Potential Costs of Longevity

There are a few different areas where costs have the potential to add up quickly as you age:

• Healthcare costs: The average, healthy 65-year-old couple retiring today can expect to spend $285,000 on healthcare costs during retirement, with as much as 68% of their Social Security benefits devoted to healthcare costs. This figure includes costs like Medicare premiums and some out-of-pocket costs for medical needs, but doesn’t include many of the costs outside of Medicare’s purview, like long-term care. And for some retirees, their healthcare costs can easily go past $1,000,000, making healthcare costs something you’d want to carefully budget for if you live longer. 

• Long-term care: While Medicare covers most costs like a hospital visit or yearly checkups, it doesn’t include long-term care, including living in an assisted living facility or having a home health aide. More than a third of people over age 65 will eventually spend time in a nursing home, and more than half will incur long-term care costs of some sort. Keep in mind that while long-term care remains a significant expense throughout the country, costs can vary greatly by state. You can check out what those costs look like in your own state here.

• Outliving a partner: When making plans for the future, it’s important to remember that that one spouse may be financially on their own for an extended time. For couples retiring now, there’s a 20% chance that a wife outlives her husband by 15 or more years. 

• Inflation: The Social Security administration does give recipients a cost-of-living adjustment (COLA) in most years to fund some of the rises that inflation brings to everyday costs. This year, for instance, payments had a 1.3% boost at the start of 2021. But Social Security COLA increases don’t always keep up with the pace of inflation, and healthcare costs tend to rise faster than inflation. With a projected inflation rate of 2.5%, what costs you $100,000 in today’s money will cost $162,862 in 2041. Keep that in mind so you’re not blindsided by inflation in years to come.

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Funding a Long Life

So how can you plan for these rising costs? Here are some of our best bets:

• Keep working: Working longer than you expected might not be possible, depending on your own health, the health of a loved one, or a wide variety of other reasons. But if you’re willing and able to work past your early 60s, you won’t be alone. People age 65 or older are 75% more likely to still be working than they were a generation ago, thanks to both choice and necessity. That doesn’t necessarily mean working the same job you always have. If you’re ready to retire but want to keep some sort of income stream coming in, you can look for part-time work that’s more flexible and fun than your previous job. There are tons of options (many remote!) for partially retired workers, such as teaching online, doing customer service, working for focus groups, or being a consultant, career coach, or patient advocate. Use our Part-Time Work Calculator to see the impact a part-time gig can have on your income, or head over to our app to get a clear look at the ways various work opportunities can enhance your Retirement Score. 

• Delay social security: For each year until age 70 that you delay Social Security, you’ll get an 8% increase to your payment—a significant boost both now and in the years to come. To see what your monthly payment might look like depending on when you decide to retire, check out our Social Security calculator.

• Long-term care insurance: For the right person and situation, long-term care insurance can be an option to cover care costs as you age. But experts recommend shopping around for plans between the ages of 60 and 65, when you’re young enough that premiums won’t start sky-high, but old enough that you’re not wasting money paying into premiums while you’re still potentially decades away from the need for care.

• HSA or FSA: If you’ve missed that sweet spot, have a pre-existing condition that makes it difficult to qualify for long-term care insurance, or can’t afford the premiums on your current budget, you might be better off planning for long-term care costs with a health savings account. If you’re still working and have an employer-sponsored FSA or HSA, make sure you’re maxing it out, including your catch-up contributions if you’re 55 or older. That way, you can put savings toward healthcare starting today and decide how you’ll use it (whether it’s on long-term care or another medical need) going forward.

• Hybrid long-term care insurance: Hybrid policies where your premiums cover both life insurance and long-term care costs are becoming more common. Plans differ slightly depending on the provider, but typically if you don’t need the long-term care insurance, your beneficiary will receive a payout after your death. There are pros and cons to these plans. For many, knowing the policy includes life insurance makes it easier to justify the cost of the premiums, and sometimes, these hybrid policies can be easier to qualify for than long-term care insurance. On the other hand, the premiums can be higher, sometimes require more in upfront costs, and have limited options when it comes to customization. Still, it can be worth looking into to find if there is one that fits your needs.

• Stay healthy: Keeping up with your regular preventive screenings and making healthy lifestyle choices can make it easier for you to prevent and manage chronic disease. That won’t just make your years more enjoyable, but will also help keep healthcare costs lower. This doesn’t have to be a total lifestyle overhaul—research has found that even moderate amounts of physical activity and incorporating a few heart-healthy foods into your regular diet can make a big difference in your overall health and wellness. Keeping up a workout routine is possible even during a pandemic. 

• Refinancing or Downsizing: Refinancing or downsizing is a great way to save hundreds each month on costs like mortgage payments, utilities, and the cost of living, which in turn extend the longevity of your retirement funds. If downsizing feels like a possibility but you’re not sure where you might land, check out our guide to the most retirement-friendly states in the country.

Silvur Lets You Calculate Difference Scenarios 

See Where You Stand

Before diving too deep into financial planning, it’s important to know where your current level of saving and retirement planning puts you. It’s powerful information that will help you intelligently manage your money going forward, but too few people—only one in three—know just how long their retirement funds will last.

Don’t be part of the uninformed crowd. Use Silvur to calculate your Retirement Score right now. In just minutes, you’ll be able to not only see how long your money will last in retirement, but get a clear picture of the areas in your life where you could afford to cut or increase spending. 

Plus, you can play around with hypotheticals to see how those would change your score. Maybe you’re contemplating a move to a different state, want to keep working a little longer, or are trying to figure out if you can afford a big purchase like a boat or new car. Entering different scenarios into Silvur’s Retirement Score calculator can help you see what life would look like in those situations, and give you concrete information you can factor into your future plans. With the right planning today, you’ll have more time, energy, and funds to devote to planning the best 100th birthday party this century has ever seen.

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