Edwin Mays discusses longevity risk

Edwin outlined the three stages of retirement: the “go-go years,” the “slow-go years,” and the “no-go years,” highlighting that healthcare costs become a significant concern as individuals age. Discussed the statistical likelihood of needing long-term care and the financial implications that come with it, especially for women who tend to live longer than men.

Longevity risk is defined as the potential financial burden that arises when individuals live longer than expected, leading to the possibility of depleting retirement savings. Edwin Mays succinctly describes this risk as a “risk multiplier,” where the longer one lives, the more they are exposed to various financial challenges such as bear markets, inflation, and escalating healthcare costs. This multifaceted risk necessitates a proactive approach to financial planning, as individuals must consider not only their current financial situation but also their potential future needs.

Mays categorizes retirement into three distinct stages: the “go-go years,” the “slow-go years,” and the “no-go years.” Each stage presents unique financial demands and lifestyle changes. During the go-go years, retirees are often eager to enjoy their newfound freedom, engaging in travel and leisure activities. However, as they transition into the slow-go and no-go years, healthcare costs become increasingly significant. It is crucial for retirees to recognize that while they may initially enjoy a vibrant retirement, the financial landscape can shift dramatically as they age.

Healthcare costs represent one of the most substantial expenses retirees will face. Mays emphasizes that even if individuals cannot qualify for traditional long-term care insurance, they must still plan for the financial implications of healthcare needs. The likelihood of requiring long-term care is high, and the costs associated with such care can quickly deplete savings. Therefore, incorporating healthcare expenses into retirement planning is essential for ensuring financial stability throughout one’s later years.

An important factor in retirement planning is the gender disparity in life expectancy. Research indicates that women tend to live longer than men, often resulting in unique financial challenges. If a husband predeceases his wife, the surviving spouse may lose a significant portion of their income, as they are typically reliant on the primary breadwinner’s social security benefits. This situation underscores the importance of considering both partners’ financial needs in retirement planning, particularly in relation to healthcare costs. Women, who often take on the role of caregivers, may also face additional financial burdens as they navigate their own health issues while caring for a spouse.

Statistics reveal that a significant portion of the population will require some form of long-term care as they age. Mays highlights the staggering likelihood that individuals will need to address long-term care needs, which often exceed what traditional health insurance or Medicare can cover. This reality reinforces the necessity of incorporating long-term care planning into retirement strategies. Individuals must be aware of the potential for high healthcare costs and the importance of having a financial cushion to address these needs.

Edwin shared: “We?call?longevity?risk?the?risk?multiplier,?because?the?longer?you?live,?the?more?bear?markets,?more?inflation?cycles?and?health?care?costs?you’ll?face.”

In conclusion, the conversation around longevity and healthcare costs is critical for anyone approaching retirement. As life expectancy continues to rise, individuals must confront the reality of longevity risk and its implications for their financial future. By understanding the stages of retirement, acknowledging gender considerations, and preparing for the statistical likelihood of needing long-term care, individuals can create a comprehensive financial plan that ensures they do not outlive their savings. As Edwin Mays aptly puts it, one cannot enjoy retirement while constantly worrying about running out of fuel. Therefore, proactive planning for longevity and healthcare costs is essential for a secure and fulfilling retirement.

About Edwin Mays

Edwin Mays is a Chartered Retirement Planning Counselor-CRPC™ – MaysGroup Advisors is an independent financial services firm, specializing in helping individuals and families prepare for, plan, and live in retirement. Their approach focuses on tailored retirement planning strategies and insurance solutions to provide our clients with guaranteed lifetime income, asset protection, and achieve tax efficiencies in support of a holistic approach to their finances.

With over 30 years in the financial services industry—including leadership roles at firms like Thomson Reuters, Merrill Lynch, Smith Barney, and Transamerica—Edwin Mays brings deep institutional experience and unmatched insight to every client engagement. As a Chartered Retirement Planning Counselor™ (CRPC), Edwin specializes in designing retirement strategies that guarantee lifetime cash flow and protect against the most serious threats retirees face today: market risk, longevity, and rising costs.

At MaysGroup Advisors, Edwin’s mission is simple: replace uncertainty with strategy and give clients the confidence to retire on their terms—with income they can count on, no matter what the market does.

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