When planning for retirement, most people immediately think about one critical question:

"How much income will I need each year?"

While that's important, it's not the full story.

In fact, successful retirement planning relies on three key factors:

1. Annual income needs (how much you'll withdraw from your portfolio each year)
2. Length of time (how long you'll live)
3. Growth of income (keeping pace with rising costs)

Interestingly, many people heavily focus on the first factor and underestimate the other two, particularly life expectancy.

If you've ever asked someone how long they expect to live, you've probably heard answers around "mid-80s."

This makes sense since the average life expectancy at age 65 is about 83 for men and 85 for women.

But relying on these averages could seriously misguide your retirement planning.

Here's why:

1. You Are Not Average

Averages include everyone—but you're not everyone!

Chances are, you've earned an above-average income, had a less physically taxing career, prioritized your health, received excellent medical care, and achieved higher education levels.

All these factors strongly suggest you'll live longer than the typical person.

Planning based on averages doesn't reflect your personal circumstances and could leave your retirement plans falling short.

2. Joint Life Expectancy: Planning for Two

For couples, financial planning must account for the lifespan of both individuals.

Surprisingly, a couple retiring at age 65 has a 50% chance that at least one spouse will live until age 92.

That's significantly longer than the individual averages, and means your retirement plan needs to sustain income longer than you might think.

Moreover, considering you're likely healthier and more financially secure than the "average couple," planning beyond age 92 is prudent.

3. Advancements in Medical Technology

The pace of medical innovation is extraordinary.

Diseases that once shortened lifespans are increasingly manageable or curable.

Artificial intelligence boosts diagnostic precision, remote patient monitoring (via connected technology) enhances care, and innovations like artificial organs are reducing transplant needs.

Simply put, today's medical breakthroughs will likely extend lifespans far beyond current expectations.

Bottom Line

Taken together, these factors suggest you could realistically live 30 years or more beyond age 65.

And that's exactly what your retirement plan should account for.

But why emphasize this now?

Because recent volatility and global stressors can easily distract us from the long-term plan we've built.

Understanding that your retirement strategy is intentionally designed for a 30+ year journey provides perspective, patience, and confidence—even during challenging periods.

Remember, your retirement is not about averages.

It's about you, your life, and planning wisely to ensure your money lasts as long as you need it to.

Stay wealthy,

Taylor Schulte, CFP®