How are you prepared for what will happen if your aging parents run out of money? What happens if you run out of money and you don’t have enough to pay the bills each month? How would you feel? How would you cope? How easy would it be for you to go back to work? What would your options be to raise money in old age?
I am hearing stories and I’m sure you are too, about people reaching their 90’s and running out of money. Well, the truth is it can happen at a much younger age. Sometimes there are circumstances beyond your control that rob you of earning capacity, circumstances like an interrupted work career. Women, in particular, miss out years of earning capacity because caring for the family too often falls on them.
Longevity makes it imperative we make a conscious effort to save more money while we are still working. Life expectancy has continued to increase with females now aged 65 expected to live to 87.1 and a 65-year-old male can expect to live to 84.2 according to the Australian Institute of Health and Welfare. I became a widow at 55, my girlfriend became a widow at 59 and my Mum became a widow at 83. The chances of women ending up on their own are greater than men and that is why women need to avoid running out of money.
It's time to make a difference in our own lives. Our retirement can last 20, 30 years or even longer. The number of octogenarians in this world, those reaching 80-89 years of age, is now the norm. The chances of becoming a nonagenarian, those reaching 90-99 years of age, is on the cards. Life expectancy is increasing across the world, and the world population has also increased rapidly, the number of Centenarians is expected to increase quickly in the future.