Why longevity is the No.1 retirement planning challenge

Longevity is the primary driver of nearly every retirement decision, according to Pamela Hess. Advisors must plan for retirements lasting 30-35 years, especially for couples, as over half of 65-year-old women and a significant portion of couples may reach age 90.

This extended timeframe requires income streams that can sustain longer lifespans, acknowledging that wealth and longevity are linked. Clients with more resources may need to plan for those assets to last longer periods. Healthcare costs are a major concern, projected to rise significantly for individuals needing care into their 90s.

Watch for evolving care needs, as many individuals will require assistance with daily activities. Funding long-term care and adapting housing situations are critical conversations to have well before retirement. Advisors should integrate these longevity factors into planning tools and client discussions early on.