Longevity Planning: How to Plan for a Retirement That Lasts to 100 and Beyond
Hey everyone, it’s Tony Leonardi, CFP® and author of A Smarter Way to Retire - 10 Steps Towards a Confident Financial Future. Welcome to another deep dive into building your confident retirement! In my latest A Smarter Way to Retire podcast episode, released September 19, 2025, we explored longevity planning—a critical topic as more people live to 100 and beyond, with rising healthcare costs threatening even the best-laid plans. Want to know your retirement’s probability of success? Book a complimentary consultation or grab my no cost e-book, A Smarter Way to Retire, at LeonardiFamilyWealthcare.com. Let’s unpack why longevity planning matters and five strategies to help ensure your wealth lasts as long as you do.
Why Longevity Planning Matters
When Social Security began in 1935, the average life expectancy was just 61.7 years—59.9 for men, 63.9 for women. Many didn’t even reach the retirement age of 65! If you made it to 65, you could expect another 12–13 years, per the Social Security Administration. Fast forward to 2025: a 65-year-old can expect to live to 85 (men) or 87 (women), with 1 in 4 pushing past 90 and many hitting 100. This shift demands a new approach to retirement planning. My book emphasizes dynamic, flexible plans using tools like MoneyGuidePro, not static budgets or guesswork. For high-net-worth retirees, longevity planning means addressing healthcare costs—$315,000 for a couple retiring in 2025, per Fidelity, excluding long-term care, which can cost $100,000–$200,000 annually. Without a plan, these costs can drain your nest egg, especially if you’re aiming to leave a legacy, like gifting $19,000 per person annually tax-free. MoneyGuidePro runs thousands of scenarios to help ensure your wealth lasts.
Planning for a Longer Life
Ignoring longevity risks is like hiking Bryce Canyon without a map—beautiful but risky. Many assume they’ll live to 85, but what if you hit 95 or 100? A client couple, both 65, planned for 85 but saw their portfolio’s success rate drop to 70% when we extended to 100 in MoneyGuidePro. By adding a 10–15% buffer—extra savings and a conservative 3% withdrawal rate instead of 4%—we boosted their success to 90%. This buffer covers unexpected costs or market downturns, ensuring you don’t cut back on travel or legacy goals like funding grandkids’ education. If you rely solely on Social Security and investments without a pension, you’re at risk of running out of money, especially with early retirement volatility. Annuities can add guaranteed lifetime income, similar to Social Security or pensions. MoneyGuidePro can model whether an annuity fits your plan, improving your odds of success.
Five Strategies for Longevity Planning
Here are five key strategies to plan for a long, confident retirement, with real-world examples:
- Healthcare Cost Projections: A retiring couple in 2025 faces $315,000 in out-of-pocket costs for premiums, copays, and deductibles, per Fidelity, assuming no major illnesses. For high-net-worth clients with multiple properties or extensive travel, costs can hit $400,000–$500,000 due to property maintenance ($30,000–$60,000/year) or travel-related medical emergencies ($25,000–$100,000). A client couple, both 62, allocated $200,000 to a healthcare fund, boosting their MoneyGuidePro success rate from 80% to 92%.
- Long-Term Care Insurance: Long-term care—like nursing homes ($108,000/year) or in-home care ($60,000/year, per Genworth 2025)—can devastate savings. Traditional policies cost $2,500–$5,000/year for a 60-year-old, covering $150,000–$300,000 in care. Buy early, as premiums rise 8–12% annually after 65. Hybrid policies combining life insurance and long-term care offer flexibility: if unused, heirs get a death benefit. A client’s $4,000/year hybrid policy preserved their $3 million portfolio, maintaining 95% success over a 10-year care need.
- Medicare and Medigap Planning: Medicare starts at 65, with Part A (hospital) usually premium-free, Part B (doctor visits) at $185/month, and Part D (prescriptions) at $40–$100/month. High-net-worth clients face IRMAA surcharges—up to $600/month for Part B if income exceeds $103,000 (single) or $206,000 (couple). MoneyGuidePro helps optimize income (e.g., Roth conversions) to minimize IRMAA. A client saved $2,000/year with a Medicare Advantage plan tailored to their travel-heavy lifestyle.
- Health Savings Accounts (HSAs): HSAs offer triple-tax advantages: pre-tax contributions ($4,150 individual, $8,300 family, plus $1,000 catch-up for 55+ in 2025), tax-free growth, and tax-free withdrawals for medical expenses. Invest in ETFs—$50,000 at 6% could grow to $180,000 in 20 years. A client couple maxed HSAs for 10 years, building a $120,000 healthcare bucket covering 80% of costs to age 90.
- Lifestyle and Legacy Integration: Stay active with home modifications (grab bars: $200–$500; stairlifts: $3,000–$5,000) to prevent falls costing $50,000+. Wellness programs like yoga keep you independent. Tie this to legacy: gift $19,000/person annually or fund 529 plans for grandkids’ education. A client gifted $38,000/year to two grandkids, maintaining 90% success for their 35-year retirement.
Take Action Today
These strategies work together. A couple I worked with faced a 75% success rate due to unaddressed healthcare costs. By adding a hybrid long-term care policy, maxing HSAs, and gifting strategically, we boosted their success to 94% using MoneyGuidePro. My two-phase process starts with a complimentary one-hour consultation to assess your assets, income, expenses, and goals like travel or legacy. Book at Calendly.com/anthony-leonardi-leonardifwc and grab my no cost e-book at LeonardiFamilyWealthcare.com. Plan smart, retire happy!