You’re already older than you were when you started reading this sentence. Sorry if that ruined your day. Here’s something to cheer you up: the gov says Americans are living longer. Women born in 2018 are expected to live to 81 and men to 76. On top of wrinkles and LOTS of birthday cake, there are financial impacts to look forward to.
Here’s what longer life expectancy could mean for your wallet.
You should probably get used to that work life. Not work-life balance, just working. Because people aren’t only living longer. They’re also staying healthier longer. That comes with an expectation to hold down a job past 65. On the bright side, more people working later in life could boost the economy. Experts call it the longevity economy.
Public benefits could feel the squeeze. We’re looking at you, Medicare and Social Security. Paired with low birth rates, high life expectancy could mean there are more people relying on these programs and fewer people to pay into them. Not great...considering they’re already in trouble. If Uncle Sam can’t figure it out, you could pay more in taxes to make up the difference. Or say 'bye' to gov help and pay for it all on your own.
Health care might get pricier. Even though we’re tending to stay healthier for longer, an aging population can put a strain on the healthcare system. Potentially driving up the costs of doc visits, medicine, and health insurance.
theSkimm: Living longer means more time to cross things off your bucket list. But it might also mean adjusting how we think about work, retirement, and healthcare. One way to prepare? Save and invest for future you.