Most people underestimate how long they’ll live in retirement.
Studies show that more than half of Americans either underestimate their life expectancy or admit they have no idea how long they may live. That matters because if you plan to live until 80 but reach 90, that’s 10 additional years your retirement savings must support.
At Dunncreek Advisors LLC, we help women in St. Paul, MN and the surrounding Twin Cities plan for retirement income that lasts as long as they do.
Understanding Longevity Risk in Retirement
Longevity risk is the possibility of outliving your assets. With today’s life expectancies, retirement can last 25 to 30 years or longer.
Women who reach age 65 today can expect to live into their late 80s on average. There is also a meaningful chance of living into your 90s. While that’s good news, it also means your retirement income plan needs to account for decades, not just a short window of time.
Without proper planning, inflation, healthcare costs, and long-term care expenses can significantly impact your financial security.
The Retirement Planning Gaps Many Women Overlook
In my years as a fiduciary financial planner, I’ve seen thoughtful, capable women run into challenges because their plans didn’t fully account for:
- Healthcare costs beyond Medicare: Medicare does not cover all healthcare expenses. Premiums, supplemental insurance, prescriptions, and out-of-pocket costs can add up over time.
- Long-term care expenses: More than half of individuals turning 65 may need some form of long-term care. Assisted living, in-home care, or nursing care can significantly impact retirement savings.
- Overreliance on Medicaid: Medicaid typically requires individuals to spend down assets before qualifying. It is not a proactive retirement strategy.
- Planning for a shorter retirement: Many retirement projections stop at age 80 or 85. A comprehensive retirement income plan should stress-test your finances to age 90 or beyond.
Why Retirement Planning Is Especially Important for Women
Women face unique financial planning challenges:
- Women typically live longer than men
- They are more likely to need long-term care
- Career breaks for caregiving may reduce lifetime earnings and savings
- Many women ultimately manage finances alone later in life
Because of these factors, retirement planning for women requires thoughtful income planning, tax-efficient withdrawal strategies, and proactive risk management.
Practical Steps to Strengthen Your Retirement Plan
You don’t need to overhaul everything overnight. Start with these steps:
1. Revisit Your Retirement Income Plan
Review whether your current plan accounts for living to age 90 or longer. Are your investments and income streams structured for sustainability?
2. Evaluate Healthcare and Long-Term Care Costs
Consider how you would fund extended care if needed. Explore insurance options and asset allocation strategies.
3. Assess Your Home and Lifestyle Goals
If aging in place is important, think about potential home modifications and accessibility planning.
4. Stress-Test Your Financial Plan
Model different scenarios: market downturns, higher inflation, increased medical costs, or widowhood. Preparing for possibilities can strengthen long-term confidence.
Fiduciary Retirement Planning in St. Paul, MN
At Dunncreek Advisors LLC, we provide fiduciary retirement planning services in St. Paul, MN. That means we are legally obligated to act in your best interest, without product sales pressure.
If you are within 10 years of retirement, this is a critical window. Decisions you make now can directly impact whether your money lasts throughout your lifetime.
A thoughtful retirement income strategy can help align your financial resources with your long-term goals, so your retirement plan reflects the life you’re likely to live.
Let's set up a time to talk. We can review where you are, where you want to be, and what steps will get you there with confidence. You've worked too hard to leave your retirement to chance.
Follow this LINK to find a time for a complimentary, no-obligation, visit. I'd love to help you create a plan that lasts as long as you do.
After 24 years in financial services, I've learned that the best retirement plans aren't just about the numbers, they're about giving you financial confidence for whatever life brings. Let's make sure yours does exactly that.
FAQs About Retirement Planning and Longevity
1. How long should I plan for in retirement?
Most financial professionals recommend planning to at least age 90. Many women live into their late 80s or 90s, and building a retirement income plan that accounts for longevity helps reduce the risk of outliving your savings.
2. Does Medicare cover all healthcare costs in retirement?
No. Medicare typically covers hospital and medical insurance, but retirees still face premiums, deductibles, copays, prescription costs, and services not covered. These out-of-pocket expenses should be included in retirement projections.
3. What is longevity risk in retirement planning?
Longevity risk refers to the possibility of outliving your financial resources. As life expectancy increases, retirement income strategies must account for potentially 25–30 years or more without employment income.
4. Should women plan differently for retirement than men?
Women often face longer life expectancy, potential career interruptions, and higher long-term care needs. As a result, retirement income, investment strategy, and withdrawal planning may require additional considerations.
5. When should I review my retirement plan?
Ideally, you should review your retirement plan annually and whenever major life changes occur. If you are within 10 years of retirement, regular reviews become especially important to ensure income sustainability.