“The first person to reach age 150 has already been born. How do I talk to a client preparing to retire at 65 using the traditional model and with planning software that only goes to age 95? The financial model is broken.”
The Challenge: As lifespans increase, it’s no secret that more people are worried about running out of money. Long lifespans, coupled with uncertain investment markets and inadequate savings, present challenges for financial planners and clients alike. Eric Rosenbaum, in his article for CNBC, writes that one hundred years ago, the average lifespan was about 42. That’s now doubled. “People are living longer and trying to stretch their income to make ends meet and stay ahead of inflation,” he says.