- ORIGINAL NEWS
By 2054, there will be 422,000 Americans over age 100. That poses a financial challenge
- SUMMARY
Due to advances in healthcare and technology prolonging lifespans, the number of centenarians (100-plus years old) in the US is expected to increase significantly over the next few decades.
It’s estimated that by the year 2054, the number of Americans age 100 and older could reach 422,000, a staggering four times higher than the current 101,000.
This surge in longevity presents a significant financial challenge for households and policymakers alike.
With lifespans expected to increase well beyond typical retirement ages, many Americans will face the need to work longer, well into their 70s or 80s, to fund their extended retirement.
Experts emphasize the importance of saving for retirement as early and as much as possible to build a robust nest egg.
In addition to working longer, experts suggest exploring other retirement income options such as purchasing annuities that offer guaranteed monthly payments, similar to Social Security benefits.
Part-time work can also be a solution to supplement retirement income and maintain cash flow.
Furthermore, staying up-to-date with skills is crucial to secure well-paying work options in the future.
Although societal norms traditionally considered retirement at the age of 65 or earlier, experts predict this may shift as people live longer and healthier lives.
Even in jobs that are physically demanding, there are examples of people continuing to work well into their 70s.
Advanced technologies and healthcare advancements have led to a more “healthy, vibrant” elderly population, making the notion of working longer more plausible than ever.
Finally, experts stress the importance of financial planning to prepare for a longer retirement, such as maxing out contributions to employer-sponsored 401(k) plans, which offer potentially free money in the form of matching contributions.
While saving may be challenging amidst other financial obligations like student loans and childcare expenses, even small incremental savings can accumulate over time to make a meaningful difference.
- NEWS SENTIMENT CHECK
- Overall sentiment:
negative
Positive
“The number of centenarians in the U.S. is poised to balloon in coming decades.”
“Retirees can still work part time so they have some additional cash flow, Glassman said.”
Negative
“That longevity poses a big financial challenge for households.”
“Workers must choose how to invest and how much money to save with each paycheck to ensure for a comfortable retirement.”
“People may have physically taxing jobs that require them to retire relatively early, or suffer health complications that require early retirement, for example. Others may not be able to do jobs on a part-time basis.”