In the estate planning world death is the variable that must always be taken into consideration. Usually, death is in regards to a sudden accident that will leave an unprepared estate scrambling to organize but the opposite can be true as well. Living longer than anticipated can have consequences when it leads to exhausted retirement and forced changes in circumstances that will not be welcome. As a result, it is necessary to make sure that a client understands the possibility of extreme longevity and at least discuss planning for a longer lifespan. While many people cannot wrap their head around the thought of living to 85 or older, those ages are becoming increasingly common and should be considered a possibility as much as a sudden, early death.
See David Lenok, Understanding and Communicating Longevity Risk, Wealth Management, October 19, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
