The Financial Implications of Living Longer
So here’s the thing. I’m in my early 30s, which I think we can all agree isn’t old at all. Yet it seems like every day I hear more and more about people my age — basically kids!! — trying to stop or slow the aging process.
Here are some interesting statistics about the anti-aging market:
The global anti-aging market was valued at 62 billion U.S. dollars in 2021 and is projected to reach 93 billion by 2027.
A 2021 survey among women showed that millennials are starting to use anti-aging products at an average age of 26, while today’s 55-year-olds started using such products at an average age of 47.
The targeted age for anti-aging products nowadays starts at around 25.
The global botox market is currently estimated at between six and seven billion U.S. dollars.
The United States generates an estimated anti-aging revenue of approximately 48 billion U.S. dollars in 2021.
In addition to the anti-aging products that are all the rage, modern medicine is getting better and better at curing fatal diseases such as cancer, which is allowing people to live long. Currently, there’s a diabetes drug on the market that “has anti-inflammatory effects that could help protect against common age-related diseases including heart disease, cancer, and cognitive decline.” Researchers are raising money to start performing tests on the drug to determine if it “can help reduce inflammation and oxidative stress, which may slow biological aging.”
This is very exciting stuff for my fellow millennials, who are all trying desperately to slow down the aging process and stay alive as long as possible. But naturally, as your friendly neighborhood money gal, my first thought goes to the finances of the whole thing.
If we’re living longer lives, how are we paying for it?
Let’s take a look at some retirement stats now:
Nerd Wallet, 2023
According to the Survey of Consumer Finances, the average retirement savings for all families was $333,940. The median retirement savings for all families is $87,000.
On average, Americans have saved only 78% of the amount they'll need in retirement.
60% of Americans don’t have a retirement-specific account.
In 2022, 1.5 million previously retired individuals re-entered the workforce for one reason or another.
48% of those retirees who “unretired” did so for financial reasons.
“Women and single retirees are more likely than men or married couples to attribute “income” as their primary motivator for unretiring.”
I’m all for extending life if it means being healthy longer, but that necessitates taking equal care of our finances to ensure we can actually enjoy the life that we worked so hard to still have.
Here’s my challenge to you: Google “retirement calculator” and click on whichever one you want (I prefer NerdWallet or BankRate). Fill out all the information to see where you stand to be at your ideal retirement age. My guess is there will be a gap between where you should be and where you are.
That’s okay! You have time. Part 2 of my challenge is this: Increase the amount you’re putting in your retirement account by 5% next month and see how that feels (if you’re contributing $300, add an additional $15 to that). It’s a small but powerful step to being where you want to be by retirement age… whether or not you’re buying into all the anti-aging product hype.
Now I want to hear from you! Are you prepared to live financially as long as you’re hoping to live biologically? Is it something you’ve thought about before? Let me know in the comments!
