Skip to main content

Managing the Risk of Outlasting Your Money

Managing the Risk of Outlasting Your Money

The risk of outlasting your retirement savings, also known as “longevity risk,” is one of the greatest sources of anxiety among retirees.

Of those who reached the age of 65 in 2022, men have an average life expectancy of just beyond age 84, while the average life expectancy for women is over 86 years of age. Keep in mind that these are just averages and that many individuals live well into their 90s.

Planning for Retirement

Prior to retirement, how much you can spend is mostly determined by employment income. During retirement, your spending is based on savings and investment income along with your desired lifestyle requirements.

Hoping that you have enough to live on through your retirement years should not be based on a dubious educated guess. Don’t wait until retirement – get the assistance of a financial professional as early as possible to help you formulate a realistic plan for your retirement.

It is essential to regularly review your financial plan with your financial professional and fine-tune your cash-flow needs as you approach retirement.

Managing longevity risk encompasses “hoping for the best but planning for the worst” so that you may enjoy your retirement without the anxiety of financial uncertainty.

Reaching Retirement Without a Plan

Almost half of retirees reach retirement age without having implemented a well-conceived financial plan. That being the case, the first step is to still reach out to a financial professional to establish a plan based on your current financial circumstances and retirement needs.

If you don’t have the benefit of pre-retirement planning, there are still ways to reduce your longevity risk anxiety: create a detailed budget, reduce your discretionary spending, or work part-time at something you enjoy.

You may also consider moving in with your children or using a reverse mortgage if you own your home.

Investing in Dividend-Paying Stocks

Whether you have a pre-retirement financial plan or are establishing your financial plan post-retirement, dividend-paying stocks (ideally with a history of increasing their dividend payments) are among the best investments for retirement income.

Unfortunately, fear of volatility causes many retired investors to shy away from investing in equities. However, equities are a necessary component of a financial plan where the average investment horizon is still greater than twenty years at retirement age. 

Invest in Your Retirement with Bloom Investment Counsel, Inc.

It is not easy to save for twenty or more years of retirement spending after you retire. Planning for retirement and mitigating the longevity risk is an ongoing, life-long process. Initiating the assistance of a financial professional as early as possible will help you formulate a long-term comprehensive financial plan that will include provisions for your retirement needs and lifestyle desires.

For over 25 years, Bloom Investment Counsel, Inc. has specialized in investing in income-generating investments, specifically dividend-paying stocks, which can help you generate income, if needed, and growth from investing in the stock market.

We provide actively managed, customized Canadian and U.S. dividend-paying portfolios for wealthy individuals, family offices, foundations, corporations, institutions, and trusts.

If you are looking to grow your retirement savings through dividend investing, connect with us today. Call us at +1-416-861-9941 or email us at

Get access to our exclusive Bloom Investment Overview by subscribing here.

Connect with us on LinkedIn to stay up to date on resources on protecting, preserving, and building wealth.

This content is provided for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this content should consult with his or her financial partner or advisor.outl

Leave a Reply

Your email address will not be published. Required fields are marked *