Living long and preparing financially for the next black swan

HUMAN longevity is celebrated in many cultures. In the UK, the Queen sends a card to those who turn 100. In the pre-Covid days, extended families in Asia and elsewhere often gathered in large groups to celebrate birthdays of the elderly - in particular milestones such as turning 80 or 90.

Living long can however be a bane when it comes to financial planning. The longer the runway that a person has in life, the more one needs to set aside for the golden years. Such is the reality for Singapore residents, who have one of the longest life expectancies in the world.

Life expectancy for those born in 2019 is 83.6 years, up by more than two years from a decade ago. Residents who turn 65 can expect to live an average of 21.3 years more.