December 22, 2023
Do you think there are pros and cons of living longer?
The Experiences of Our Aging Population
As we age, our bodies change. We may not be able to do the things we used to do. We may need more help from others. But aging can also be a time of growth and new experiences.
The Benefits and Disadvantages of Living Longer
On the one hand, living longer means we have more time to enjoy life, spend time with loved ones, and pursue our interests. We can also contribute wisdom to our next younger generations. On the other hand, longer lifespans also mean more years of potential ill health and declining mental faculties which can mean that we can outlive our nest eggs and might need more income from family resources.
The Financial Implications of an Aging Population
An aging population has implications for both individuals and society as a whole. Individuals may need to plan for a longer retirement, and society may need to adjust its entitlement programs to account for the increased number of retirees. More workers are needed to support retirees via the social security system. In the 1940s there were 42 workers supporting 1 retiree but at present the ratio has gone down to 3 workers to 1 retiree. That is the reason why there is a prediction that by 2035 there will be a Social Security benefit deficit. The new generation of workers are now advised to not depend on Social Security but has to supplement with other financial growth funds such as the market portfolios, income lifetime annuities and cryptos.