Are you prepared to have a lot more birthdays?

“Happy New Year!” It feels as though I wrote those exact same words just a few weeks ago. In reality, I’ve written more than 50 articles since I last wrote them. I’m noticing that as I age, the years seem to be going by faster than ever. But even though the years may be flying by, there’s some good news. Statistically, there are likely to be a lot more years ahead for all of us. Life expectancies just keep getting longer. And that means we need to prepare our finances for a lengthy retirement.

Two recent news stories caught my eye. One is a local story that got national attention and the other a story about a beloved American icon.

The local story involved 88-year-old Oakland County resident Ed Bombas, who was working full time at a local supermarket to make ends meet. He said that he still had major medical expenses after the passing of his wife seven years ago, and that he lost his pension when GM filed bankruptcy. That claim surprised me because GM offered the choice of staying with pension income or taking a lump sum buyout in 2012. The good news is that a GoFundMe effort raised $1.7 million, so he no longer has to work.

The other recent story is that famous entertainer Dick Van Dyke recently turned age 100. I believe Mr. Van Dyke is doing just fine financially. But both stories highlight what I believe is important for almost everyone. Greater longevity means you’ll need more reliable retirement income. You don’t want to outlive your nest egg.

Early in my career as a financial advisor, many clients often commented that longevity wouldn’t be an issue because their parents died at a relatively young age. Fast forward to the present and most of those clients are still living and thriving.

All indications are that we should prepare for living to a ripe old age. According to recent statistics, there were 101,000 centenarians in our nation in 2024. And it’s projected that number will quadruple by 2055. Said another way, the odds are that one in five retirees will become a centenarian.

Stating the obvious, you don’t ever want to run out of money regardless of your age. There are a lot of reasons why a person in their eighties may want to work, but you don’t want to be 80 and have to work. By the time anyone reaches 90, work is likely out of the question, and then it’s all about your nest egg and income.

As we move into a new year, it’s appropriate to lengthen your goals. For example, if you utilize financial planning software, lengthen your projected lifespan. If the software projects you have an 80 percent probability of financial success to age 85, recalculate to the probability of success to age 100.

I wish all my readers all the best for 2026. Yes, life happens, but you don’t want to be in your late eighties and need to work to survive. Nor do you want to be dependent on others for financial assistance in retirement.

Attaining age 100 used to be a rarity. The trend today is that one in five retirees will reach that milestone. You could be the one.