Longevity Risk: Building a Plan That Works If You Live to 95
You may retire at 65 and still have decades ahead of you. Projections show that Americans turning 65 in 2025 face the possibility of 20 to 30 years in retirement. (Source: Bankers Life) That means your savings, income plan and asset strategy need to span much longer than many traditional retirement models assume.
Preparing for longevity means building a financial framework that supports you across a long time horizon. It involves defining when income sources will activate, converting part of your savings into guaranteed income, protecting your purchasing power from inflation and staying flexible as life evolves. The goal is to ensure your finances last as long as you do.
Income Sequencing: Planning When to Tap What
Income sequencing means deciding the order and timing of tapping your income sources: pensions, Social Security, investments and annuities. A 2025 study shows that retirees who combine guaranteed income with other income sources improve their odds of sustaining spending across longer retirement periods. (Source: Journal of Retirement / Insurance News Net) By aligning more flexible investment draws in the early years and using stable income streams later you enhance your ability to ride market cycles and minimize the odds of depleting savings too soon.
For example you might begin drawing from investment accounts early in retirement when you are more mobile and active. Then you delay or reduce withdrawals from those accounts when you pivot into a phase where stability matters most. Sequencing your income in this way gives you control and lets your portfolio work for you over the long haul rather than draining it rapidly.
Partial Annuitization and Inflation Protection
Living into your nineties brings two major risks: running out of income and losing purchasing power. Partial annuitization addresses the first risk by converting a portion of your assets into lifetime income while keeping the rest invested. Research from mid-2025 supports this strategy as one of the most effective in managing longevity risk. (Source: AEI / NAPPA-NET)
Inflation is the second risk. Even modest inflation over 20 or 30 years can erode your lifestyle materially. The value of a dollar spent today may buy only a fraction of what it does decades from now. To protect against this you should include income or assets that adjust for inflation such as cost-of-living adjusted annuities or investments with real growth potential. The objective is to build a guaranteed floor of income that covers essential living costs plus a growth layer that fights inflation and adapts to your later years.
Flexibility and Ongoing Review
A retirement that spans 25 or 30 years or more cannot be built and forgotten. Tax laws change. Markets fluctuate. Health care expenses shift. Your goals will evolve. A plan built for longevity needs periodic review and adjustment. Research published in 2025 underlines that retirees who revisit their strategy at regular intervals fare better than those who stick to a rigid framework without updates. (Source: Urban Institute)
Annual or bi-annual reviews allow you to adjust withdrawal rates, rebalance your portfolio, evaluate when to convert assets into guaranteed income and revisit your inflation strategy. Flexibility in your plan does not mean constant reaction but means staying aware and ready to adapt when conditions change.
Building Confidence for the Years Ahead
When you treat retirement as a long journey rather than a brief phase you change how you prepare. You transition from hoping your savings will last to knowing they are structured to last. With smart income sequencing, a portion of your assets locked into lifetime income, inflation protection built in and regular plan reviews, you can approach your later years with confidence.
If you’re ready to build a retirement strategy designed for the long horizon ahead, schedule a consultation with SLD Solutions. They can help you construct a personalized plan that sequences income, creates guaranteed income floors, protects against inflation and remains flexible, so you can live your retirement years with stability and freedom.
