With improvements in health care, people are living much longer than expected. While it is possible for the high net investors to live long comfortably, longevity is a cause for concern for those who are not financially secure or strong. People are worried about their pension and so are the governments who normally estimate based on population development. Longevity is often overlooked.
Why is it risky to live long?
While being healthy and living a long life is good, most people often outlive their best expectations. Hence, even if they had saved for retirement they are often caught by surprise and they are faced with a situation where their personal finances dwindle too rapidly with each passing year. Even though social security system has been designed to help people in their old age, even this system is not tuned to address the problem when people live beyond their 80s; the problem if not addressed soon will snowball into a socio-economic problem.
It is estimated that the global cost of aging can increase a staggering 50 % even if people live for three years longer than predicted. This kind of unexpected expense will hit the balance sheets of organizations and businesses really hard and can have severe consequences to the nation’s economy as well.
What is the solution?
Despite the best planning if you believe you will live longer than planned than you must get your finances in order. The governments and pension providers should wake up to this reality and start working for tangible results immediately because every year delayed will only aggravate the issue. Even markets will recognize this potential hazard to the finances of the government and will react turbulently. To mitigate the effects they can increase the retirement age of employees thereby giving them a better opportunity to save for their long future ahead.
While the government and the corporates work on tackling this surmounting problem you can help yourself at a personal level by supplementing your income. There are several trading robots like the Crypto Code which have been designed to help even a novice make some profits while investing in cryptocurrency.
You need not be at the mercy of any of the old age related programs for financial help if you can sort your finances from today. The need to be financially secure is dire in old age than any other time in one’s life because it is important to live a life of dignity.