National Centenarians Day: Planning for a Longer Life (and Legacy)
Who wants to live to be 100? That depends on who you ask.
Whatever the answer, one thing is clear: The odds of reaching that milestone are rising, along
with the length of retirement and the number of life changes that come with it.
Life expectancy gains in the US since the turn of the century are staggering, and they are
straining retirement, medical, and support systems that were not designed for such longevity.
The number of Americans who are 100 years old or older has nearly tripled over the past three
decades and is expected to quadruple over the next 30 years.1
Though an aging population is a public policy challenge, reaching age 100 - and beyond - is
also a personal milestone that more Americans than ever are celebrating. While few people plan
to live 100 years, more of us will, and your financial and estate plans need to keep pace with
that new reality.
Age 100 (and Counting)
Georgia resident Naomi Whitehead became the oldest living American when she turned 114 in
September 2024.2
Raised on a farm, Whitehead attributes her long life to hard work.3 Her story is also one of
incredible change. She was born in 1910, when the average life expectancy for women was just
52 years.4 Only one in eight homes had electricity. Women could not vote, and income tax did
not exist. During her lifetime, Whitehead has witnessed two world wars, the Great Depression,
the moon landing, airline travel, civil rights milestones, and the digital age.
Now living in a senior care facility in Pennsylvania, Whitehead may have updated her estate
plan a few times along the way, having outlived her husband and three sons.
And because of the trend toward longer life expectancies, the chances of her grandchildren
reaching 100 are far higher than hers were. However, those added years are not always healthy
years. Early gains in longevity came from decreased rates of infant mortality and improvements
in public health; recent increases in life expectancy come from medical advancements that
increase the odds of surviving later-life conditions. But today we spend more years managing
chronic illnesses such as arthritis, diabetes, and dementia than ever before. We are living longer
lives but not healthier ones.5
You probably already know from experience that your health directly impacts your wealth. The
link between health and wealth becomes more important with age. A longer life means more
years of expenses, more potential for incapacity, and greater pressure on your retirement and
estate plans. Planning around life expectancy and "normal" aging is shortsighted. You also need
to plan for longevity risk: the financial, medical, and legal challenges of living longer.
Financial Planning for a Longer Life
Statistically, most of us will not live to be 100, let alone become a supercentenarian (a person
who lives to 110 or older) like Naomi Whitehead. However, Americans are expected to continue
living longer.
Many people now expect to spend 30 or even 40 years in retirement. Deciding how you will
cover living expenses and medical costs, and ensuring that you do not outlive your savings, has
become an increasingly important part of financial planning.
The median retirement savings balance for people between ages 55 and 64 is $185,000.6 A
typical 65-year-old couple can expect to pay more than $680,000 in lifetime medical costs.7 This
figure represents only out-of-pocket costs, not expenses covered by Medicare. It also does not
account for long-term care, which could cost upwards of $100,000 per year, according to an
RBC Wealth Management survey.8
Only slightly more than half of survey respondents told RBC that they have factored the cost of
healthcare into their wealth plans.9 Of those respondents, half say they are likely
underestimating those costs.10
Estate Planning in the Age of Longevity
Like retirement savings, estate plans are often not built for the long (and getting longer) haul.
And that is assuming that you have an existing plan. The number of Americans who do not have
an estate plan is double the number of those who do.11 Many who do have one have not
updated it in years or decades.
Even if you updated your estate plan around the time you retired, it may now be out of step with
your life and legacy goals. Beneficiaries and trustees may have died, family dynamics may have
shifted entirely, and new generations - grandchildren, great-grandchildren, and even greatgreat-
grandchildren - may have been born and now need to be considered.
Living longer also increases the odds that something will go wrong, whether medically,
financially, or legally, including:
- Cognitive decline or incapacity
- Outdated or missing powers of attorney or healthcare proxies
- Obsolete fiduciary appointments (trustees, executors, agents)
- Conflicting or outdated beneficiary designations
- Misaligned or forgotten asset ownership
- Unintentional disinheritance across multiple generations
- Unsustainable long-term care costs
- Gaps in incapacity or end-of-life planning
A longer life calls for deeper planning - not just to protect your quality of life but also to ensure
that your legacy stays intact.
Planning for the Century Mark (and Possibly Beyond)
You might not expect to live to be 100, but planning as if you might is one of the best ways to
protect your health, wealth, and family.
Your estate and financial plan should account for the following considerations:
- Rising healthcare costs. Long-term care insurance or hybrid life policies with long-term
care riders can help cover care at home, in assisted living, or in nursing facilities.
- Income longevity. Stress-test your retirement plan to ensure that your money will last.
Strategies to incorporate into your plan may include guaranteed income sources such as
annuities, conservative withdrawal rates, and delayed retirement to boost both retirement
and healthcare savings.
- Incapacity planning. Keep durable powers of attorney and healthcare proxies current.
Name trusted individuals who are able and willing to act on your behalf if needed.
- Trust-based planning. Trusts can safeguard assets, reduce the risk of conflict, and carry
out your goals well beyond your lifetime.
- Ongoing review. Estate plan reviews with an experienced attorney at regular intervals
(typically every three to five years, but more often as you age) or when you experience
major life changes (such as the death of a loved one, marriage, divorce, inheritance, or
significant financial shifts) help ensure that your plan keeps pace with your circumstances,
your family, and your long-term vision.
Let's Talk About the Long View
If you already have an estate plan, now may be the time to review it. Are your documents up to
date? Are your chosen decision-makers still ready and able to serve? Have you included
everyone you want to benefit?
If you do not yet have a plan, why wait? Living longer does not always mean that you will be
able to manage everything yourself. Wisdom may grow with age, but so does the risk of chronic
illness and disability. An incapacity plan is just as essential as a will or trust because, by the
time you need one, it may be too late to create it.
National Centenarians Day is a reminder that while age tells a longer story, it does not tell the
full story. Let us ensure that your plan is built to go the distance - no matter how long that
journey may be.
MEREDITH | PC
4325 Windsor Centre Trail
Suite 400
Flower Mound Texas 75028
214-513-1013
This newsletter is for informational purposes only and is not intended to be construed as written advice about a Federal tax matter. Readers should consult with their own professional Counselors to evaluate or pursue tax, accounting, financial, or legal planning strategies.
You have received this newsletter because I believe you will find its content valuable. Please feel free to Contact Me if you have any questions about this or any matters relating to estate planning.
