Social Security – As Longevity Insurance: 3rd in a series of 5

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About Larry Frank, Sr.

Larry R Frank Sr., MBA, CFP®, is an experienced financial advisor and a published author on Retirement Planning Research. Have a financial question? Click Here to Ask Larry

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3 Responses to Social Security – As Longevity Insurance: 3rd in a series of 5

  1. Thomas January 28, 2014 at 4:33 pm #

    According to data compiled by the Social Security Administration:
    A man reaching age 65 today can expect to live, on average, until age 84. A woman turning age 65 today can expect to live, on average, until age 86.
    And I’ll add, if you do make it to 85, you’re body will be 85. Sure there are some people that have sort of active lives, but your best years are behind. If you’re happy being an old geezer, so be it. By the time I reach 85, I plan on being so worn out, I’ll be punching my ticket and going over the great divide.
    Life is short, at 65 if you haven’t been having fun, you’re wasting valuable time.

    • Larry Frank January 28, 2014 at 6:06 pm #

      Hi Thomas, your ages are almost correct using the 2009 table … as of this reply http://www.ssa.gov/OACT/STATS/table4c6.html (it is updated and the ages are getting older with each update): Man age 65 today expected longevity is 82.5 years old; 65 year old female is 85 years old.

      Point 1) This blog post is for couples – and how to maximize the benefit for the higher earning of the two. Your point is from that of a single person without the need for care of a survivor. Be careful how you interpret things from only your own perspective if you have a significant other.

      Point 2) By the time a male reaches age 82, his life expectancy (by definition that means that 50% outlive this age, and 50% don’t) is age 89 … and those reaching age 89, it is now 93. In other words, one never reaches life expectancy for their current age because there may be more years remaining. My point? I have many clients in their late 80’s and 90’s who value life as much or more as they did when 45 or 65. Note: Females @85 may expect age 92; and @92 they may expect age 96! Again, by definition, half don’t reach these ages, however the other half do.

      Point 3) Yes, live life to the fullest each and every day. But, make sure you can support life into older than expected ages too – all those older clients I talked about did not expect to reach the age they are now!

      Point 4) Next in this series is a blog post on longevity and how it is often underestimated by most people http://blog.betterfinancialeducation.com/sustainable-retirement/social-security-and-life-expectancy-4th-in-a-series-of-5/

      Yes, live life to the fullest every day. And remember that you could be among the “lucky” ones who are blessed with unexpected longevity, at least from your own point of view.

      More on life expectancy: http://en.wikipedia.org/wiki/Life_expectancy

      Living to 100: http://livingto100.soa.org/ and https://www.livingto100.com/ (garbage in, garbage out on any calculator caveat).

      Thank you for your comment Thomas.

  2. Larry Frank, Sr. November 2, 2015 at 9:20 am #

    The new law ” Bipartisan Budget Act of 2015 * ” has removed two prior strategies that couples used to have since 2000. “File and suspend” and “Restricting the application to spousal benefits” are no longer viable strategies. The two strategies above were removed by the new law as “low hanging fruit” (most obvious opportunities because they are readily achievable and do not require a lot of effort) on Congress’ efforts to save money in the Social Security trust fund structure.

    Strategies for the divorced or survivors are still viable as are many other claiming strategies however.

    *Subtitle C: Protecting Social Security Benefits. Sec. 831. Closure of unintended loopholes.

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