What Life Expectancy Should I Use in My Retirement Plan?

Retirement Answer Man

Roger Whitney, CFP®, CIMA®, RMA, CPWA®

Lifeplanning, Retirementplanning, Financialplanning, Saving, Careerplanning, Self-improvement, Education, Retirementpodcast, Investing, Business, Investmentmanagement, Retirement

4.7 • 1.1K Ratings

🗓️ 5 March 2025

⏱️ 33 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

💬 Show Notes

In this episode, Roger Whitney tackles the critical question of life expectancy in retirement planning. With statistics from the CDC, he guides listeners through the complexities of determining how long they should plan for their retirement. Roger addresses the cognitive bias known as the "curse of knowledge," providing clarity on how to approach life expectancy assumptions. He also shares insights on the importance of using personalized data rather than general averages, and discusses practical tools for assessing longevity. Tune in for valuable advice that can help you plan confidently for your future!

OUTLINE OF THIS EPISODE OF RETIREMENT ANSWER MAN

(00:00) What life expectancy should you use in your retirement plan?
(00:39) We have a change happening to our Six Shot Saturday email.
(02:18) Roger discusses the concept of ‘The Curse of Knowledge.’
(03:38) Listener, D.S., sends in a question about life expectancy in retirement.
(05:58) Roger discusses how to interpret the data from the Social Security Administration life expectancy calculator.
(9:30) Roger uses age 92 for a male and 94 for a female for a base assumption in retirement planning.

LISTENER QUESTIONS

(11:26) Thrift savings plans will allow Roth conversion starting in 2026.
(12:13) Karen asks about the pie-cake and the purpose of a 6 month emergency fund.
(15:35) Karen asks a second question about suggestions for saving vehicles that are not US treasury bonds.
(17:27) Evan asks “How does a pension figure into a net worth statement?”
(22:00) Gene asks how to look at the total allocation of your retirement portfolio.
(25:00) Roger reads feedback from listener Scott about last week’s episode.

ROCKING RETIREMENT IN THE WILD

(27:01) Scott has been helping federal employees think through their retirement plans.

SMART SPRINT

(30:42) In the next seven days, revisit the age you are going to use in your retirement plan.

BONUS

(31:12) Roger reads an entry from his grandfather’s WWII journal.

REFERENCES

Retirement Answer Man
Sign up for The Noodle (previously known as Six Shot Saturday)
The Retirement Answer Man Free Worksheet Library
Social Security Life Expectancy Calculator
The Retirement Researcher

Show notes created by https://headliner.app

Transcript

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0:00.0	According to the CDC, the average life expectancy in the United States for a female is 80.2 years.
0:11.2	For a male, it's 74.8.
0:13.8	So the question before the house is, what life expectancy should you use in your retirement plan?
0:20.5	We're going to answer that and more on today's show.
0:24.8	Welcome to the show.
0:26.2	Roger Whitney here.
0:27.9	Sometimes you just got to laugh at yourself, which I am doing right now.
0:33.7	Before we get to the main topics, I got an announcement.
0:38.3	We have a change happening to our six-shot Saturday email.
0:42.0	Well, two changes actually.
0:43.4	Number one is we are changing the name to the noodle.
0:49.9	So if you are currently receiving our weekly email every Saturday morning,
0:53.9	you're going to see
0:54.2	something different because it's called the noodle rather than six shot Saturday.
0:58.6	If you are not receiving the noodle, you should. It's a great supplement and standalone
1:06.4	newsletter that comes every Saturday morning where we share links about topics that we talk about
1:12.1	on the show, as well as other things that we think are helpful in creating a great life and
1:16.7	retirement. So if you're not signed up for it, join thousands of others by going to the noodle.
1:22.2	Dot M.E and subscribing. The second change related to the noodle is we're going to up the things that we share.
1:30.0	We have found that at times it's helpful to have some graphics to bring home a point that we talk
1:37.6	about. So we're going to share videos from time to time related to the topic that we're talking
1:42.2	about. As an example, in this coming week's email
	...

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