What Matters Not What’s Easy

FINANCIAL ADVISORS: Are you setting life expectancy too low in your financial plans?

Too often, I see Financial Advisors default to a superficial view of mortality tables. For example, a male client reaches 65 years old, and a mortality table suggests he has 17 more years to live. So, we just add 17 and stop at age 82.

But let’s pause.

If that 65-year-old client reaches 82, he still has a 92% chance of living longer! Would you create a plan that runs out of money when there’s a 92% chance he’ll still need it?

Clients often make emotional guesses about life expectancy:
➤ “My parents died in their 70s, so I will too.”
➤ “I’m overweight and don’t exercise like my grandparents did, so I won’t live as long.”

These assumptions may seem rational, but they’re dangerous guesses. As professionals, we must bring sophistication and realism to the table. Misinterpreting—or worse, ignoring—mortality data can lead to premature depletion of assets. That’s a devastating failure of the plan when the client is at their most vulnerable stage of life.

Here’s a better question to explore:
➤ “At what age would there be an 85% chance you won’t survive that year?”
➤ “At what age will there be a 90% chance you won’t live another year?”

These questions shift the conversation. For many, the answers push life expectancy well beyond 90. Statistically, an 85% chance of dying doesn’t happen at 82 or even 95—it happens closer to 120.

Does anyone expect to live to 120? Of course not. But planning this way ensures one thing: the client will never outlive their money. That’s far better than leaving them vulnerable if they beat the averages.

This doesn’t mean ignoring health. If a client has poor health, refinements can be made. But relying on emotional assumptions is a disservice to clients.

Think of it this way:
Advances in medicine and science are extending life expectancy faster than most realize. The “average” may be 82 today, but actual death rates tell a different story—people are living longer.

The Bottom Line:
As Financial Advisors, we must bring data-driven clarity to life expectancy. Use mortality tables realistically. Incorporate conservative assumptions so the client’s money lasts.
Because no client wants to hit 92—alive and out of money—just because we relied on emotional guesses.

What do you think? I’d love to hear how you approach life expectancy. Let’s elevate our profession and ensure clients’ peace of mind.
I If this resonates, let me know. I’m considering creating YouTube videos on this topic for professional advisors.