Wealth Way, Financial Planning, Retirement Are you being mindful about your financial planning horizon?

Many countries have not yet published life expectancy data in 2022, however those who have had better outcomes than the US. Sweden had fully recovered back to their pre-covid life expectancy of 83.1 years, Belgium, Denmark, and Norway’s are slightly lower. Finland’s recovery profile reflects the US, but it’s important to note that they’ve suffered less than half of the losses compared to the US since 2019.

This data also puts a spotlight on the flattening of the life expectancy curve in the US even prior to the pandemic, which was stagnant since 2010 before taking a nosedive in 2019. Homicides, drug overdoses in addition to chronic conditions such as heart disease and obesity are said to be the main culprits for what could be considered as a long-term mortality crisis. This also raises the question of whether a potential reevaluation of public health in the US is needed, in addition to a revised long-term well-being and healthcare strategy to address these challenges.

Whether or not the data says we may be set for longer life expectancy, as an investor it’s key to evaluate your wealth plan to see if you’re financially set in the long run.

According to UBS CIO Americas Retirement Strategist, Ainsley Carbone, “Life expectancy measures are a good starting point when determining your planning horizon, but there are aspects of it that can be misleading. For example, life expectancy estimates are statistical measures, and they don’t account for any personal factors such as lifestyle choices or family medical history.”

“Underestimating your life expectancy can lead to a miscalculation of how much wealth you need to retire. So, we advise against relying solely on medians or average life expectancy when making decisions within a financial plan and to think more about a planning horizon that’s mindful of your personal situation and lifestyle.”

Take an approach to your wealth that works for you and your entire financial life. Whether you’re pursuing retirement, making an investment or forging a legacy, understanding the bigger picture is the first step to helping you pursue your financial goals today, tomorrow and for generations to come.

Click here to learn more about the UBS Wealth Way, or reach out to your Financial Advisor to learn more.

Main contributor: Shawn Awan

UBS Wealth Way is an approach incorporating Liquidity. Longevity. Legacy. strategies that UBS Financial Services Inc. and our Financial Advisors can use to assist clients in exploring and pursuing their wealth management needs and goals over different time frames. This approach is not a promise or guarantee that wealth, or any financial results, can or will be achieved. All investments involve the risk of loss, including the risk of loss of the entire investment. Time frames may vary. Strategies are subject to individual client goals, objectives and suitability.