The Longer Investment Horizon

The Longer Investment Horizon

Changes in longevity require changes in our expectations about retirement savings. In the early 1900s, the average life expectancy of a newborn American was about 50 years. In 1933, the year that Social Security was introduced as part of F.D.R.’s New Deal, the life expectancy of a newborn had risen to about 62 years. Today, the average life expectancy is up to 77. That is a 50% increase in life expectancy in roughly one century’s time. With the rapid advancements in health care and technology, we should expect similar increases over the course of the 21st century. ...