As life expectancies generally continue to increase, individual investors have some growing concerns about outliving their savings. Globally, over 50% of wealthy investors expect to live for at least 100 years, which can lead to financial anxiety. Global wealth management co-president at UBS, Tom Naratil, said a common question among these investors is, “Can I afford to live that long?” The real-world impact of this evolving expectation has lead two of out three investors to continue working beyond traditional retirement age. For financial planners, the possibility of an extended retirement for clients necessitates portfolio changes. When discussing these issues with his clients, Naratil commonly suggests delaying the traditional shift to fixed income, maintaining more equities and for longer, and possibly investing in longer-duration assets.
See Ashlea Ebeling, Are You Financially Ready to Live To 100?, Forbes, April 19, 2018.
Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
