Medical journal The Lancet reported a story that was widely covered by major news agencies: After "The Lancet, more than half of all babies born in the United States (and other industrialized countries) have experienced since 2000 will be up to 100 years.
As soon as a milestone only a handful of seniors, the new standards three figures are almost commonplace at the time in this century winds to a close. Half of all children in this country in 2007 were born to live to 104 years.
While the novelty is high ( "Grandpa, tell us again how there is only one channel on the Internet if you have a child!"), This ad has more severe consequences for Americans today - young and old - when it comes to managing their personal finances. Principal author of the Lancet study drew some good news for individuals, but it is a challenge for companies.
First a little history: While the improvements in life expectancy in the first half of this century, mainly due to decreased infant mortality, are now living longer reaches the rear end. While the nation braces for the aging baby boom generation, a process that has just started and has a huge impact on everything that is from Social Security to health care, the impact of the next wave be larger. Fortunately, the study shows that not only the people are living longer, they stay longer in other words, was 70 of 40 are the new age of your children adults.
What does this new world mean for your finances - and your children? WalletPop said John Rother, Executive Vice President for Policy and Strategy, AARP, and asked to address the impact on the future of seniors.
First, Rother says American workers should embrace the concept at a later retirement age. "When you live 100 years, then in the 50s to retirement is not a good idea," he said. Instead of retiring at age 62, the current average, young Americans today, "Today should consider 67 - or more - as a realistic age for leaving employees. These five years can make a big difference when you finance a 35-plus want-a-year retirement.
Rother also says the next generation of senior citizens' pensions should be viewed as a means of managing their money because there are more chances to survive on your savings if you live 100 or more. AARP also encourages automatic enrollment in the programs by an employer sponsored pension plans to help Americans prepare for their future.
As the next generation of seniors to stretch their savings over a longer period have, they should also avoid being too conservative in their investment advice Rother. Holding a compensation in cash or CDs in four or more decades is likely a losing proposition when inflation is taken into account
In addition to the Capital expenditure 21 Seniors century will see major changes in their housing options. Reverse mortgages, which are now marketed in large part to seniors, will probably fallen into disfavor. With people who are up to 100 ships, it is simply not be possible to continue to pay for the mortgage people stay in their homes for many years. Like the AARP's Rother showed reverse mortgages are not necessarily the best option for seniors with home equity and good credit.
Seniors who do not have to stay in their own homes in the coming decades is likely that many more options, "said Rother. To remove senior housing-centric that demanding tasks such as landscaping and maintenance, but still people keep their independence will occur more frequently in future as the vintages age. When people are living longer, the demand continues to increase. It is possible that the next boom are not McMansions on the housing market, but in the pre-planned communities that offer a combination of individual and community-based residential areas.
Rother final piece of advice: "Get off the couch and with other people, outdoor activities and are committed to promoting intellectual activities." As life expectancy increases, the Americans want to ensure that their extensions are the golden years of active and happy. With good financial advice, these "mentally stimulating activities" do not understand how you finance your retirement time.
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