Question:
What happens to your money if you live to 95?
Response:
Thirty years ago, living to 95 felt like a long shot. Today, it’s a real possibility, and it’s something retirement plans need to account for.
For most of our working lives, the focus is on accumulation. Save regularly. Invest wisely. Reach retirement with enough set aside. Those fundamentals still matter. But longer life spans are changing the conversation. It’s no longer just about how much you save. It’s about how that money is expected to support you over time.
If someone retires at 65 and lives to 95, retirement would last 30 years. That’s a long stretch for savings to cover everyday expenses, especially as healthcare costs rise, housing needs change, and taxes and insurance evolve along the way.
Carolyn Ames
That’s why savings take on a different role. It’s not just about growth. It’s about producing income you can rely on, year after year.
In the past, pensions handled much of that responsibility by providing a steady paycheck for life. Today, far fewer people have access to that kind of income. According to the Alliance for Lifetime Income and LIMRA’s 2025 Protected Retirement Income and Planning Study, only 14 percent of Gen X workers expect to receive pension income in retirement.* That means more individuals are responsible for turning their own savings into income that can last.
This shift highlights the importance of planning for income that can keep pace with a longer retirement.
Living to 95 doesn’t have to be a financial problem. It’s actually the outcome retirement planning is meant to support. The real question is whether your financial resources are organized in a way that can support a longer life.
Tom Buckingham
A good place to start is understanding essential expenses and how they will be covered. Social Security often provides a foundation and pensions, too, if you’re fortunate enough to have one. Investments can offer growth potential and flexibility to generate supplemental income. For some retirees, turning some of those assets into additional guaranteed income can help bring more consistency to cover basic living expenses.
As retirement approaches, IRAs and 401(k)s may represent an important source of retirement savings. While these investments can provide growth potential, their value may fluctuate with market performance. Creating a predictable source of income can become an important part of retirement planning.
Annuities are one option designed with that goal in mind. Some products can convert a portion of savings into income that may continue for life, depending on product design and individual circumstances.
Retirement planning isn’t just about building assets. It’s about structuring them to support the life you want to live, for as long as you live it.
*Source: Alliance for Lifetime Income and LIMRA, 2025 Protected Retirement Income and Planning (PRIP) Study
Tom Buckingham, FSA, MAAA, Chief Growth Officer, Nassau Financial Group, Hartford, Connecticut
