Retirement Lessons From A 122-Year-Old Frenchwoman

Jeanne Calment, a Frenchwoman, sold her apartment in 1965 on a contingency contract to Andre-Francois Raffray, a local lawyer.  The agreement stated that Raffray would pay Calment 2,500 francs a month until she died, and then the apartment would become his outright. 

At the time, Raffray thought he was getting the better end of the deal—he was only 45, whereas Calment was 90 and a heavy smoker.  He was not counting on her outliving him, however, that is exactly what happened.  Raffray died at the age of 77, after paying Calment more than double the apartment’s market value.  His family continued to honor the deal after Raffray’s death and was paying Calment rent when she passed away at the age of 122. 

Madame Calment’s story illustrates the importance of considering life expectancy in retirement planning.  There is often a serious disconnect between how long people think they’ll live and how long they actually do.  While you do not know how long you will live, life expectancy gives you a starting point from a financial planning perspective.  It enables you to build a plan that takes into account that you may live longer than you anticipate.  This way, you can be confident you will not outlive your money.

See Rebekah Barsch, What A 122-Year-Old Frenchwoman Can Teach Us About Retirement Planning, Forbes, Feb. 18, 2015.