A question we sometimes hear is, “Is it possible that I could outlive my savings?” The short answer is yes, which is why understanding longevity risk is so important.
People are living longer than ever before. While a longer life is a gift, it also means retirement may need to be funded for 25, 30, or even 35 years. The same risk applies to those who plan to retire early. Over a long retirement, financial risks can quietly compound.
Common contributors to longevity risk include inflation, which reduces purchasing power over time, market volatility—especially early in retirement—changes in lifestyle or family needs, and rising healthcare and long-term care costs. Longevity risk is less about how much money you have and more about how well your financial resources are aligned with your long-term plans.
Wealth vs. Financial Planning
Having wealth is not the same as having a financial plan. A common misconception is that substantial assets alone eliminate the risk of running out of money. In reality, longevity risk often stems from how wealth is structured and managed. Without a coordinated strategy, individuals may overlook liquidity needs, withdraw from accounts inefficiently from a tax perspective, underestimate inflation, or fail to plan adequately for healthcare and long-term care.
There are several strategies that can help ensure your money lasts.
Strategies to Help Your Money Last
Intentional Retirement Income Planning
The first is having an intentional retirement income plan. Rather than relying on a single withdrawal rule, such as the 4% rule, a personalized income strategy considers your spending needs, lifestyle goals, tax efficiency, and flexibility.
Investment Planning for Longevity
Second, an investment plan built for longevity is essential. An effective strategy balances long-term growth with risk management. This helps protect your portfolio during periods of market volatility—especially early in retirement—while still positioning assets for growth over decades.
Planning for Inflation and Healthcare
Third, planning for inflation and healthcare costs is critical. Inflation steadily erodes purchasing power, and healthcare expenses often rise faster than general inflation. Preparing for these realities helps maintain long-term financial independence.
Coordinated Professional Guidance
Fourth, coordinated professional guidance matters. Longevity planning works best when financial strategies align with tax and estate planning. Collaboration between financial advisors, CPAs, and estate attorneys helps reduce complexity, avoid gaps, and improve outcomes.
Values-Based Financial Decisions
Fifth, values-based financial decisions provide confidence. Knowing that your money supports what matters most—family, legacy planning, philanthropy, or personal freedom—helps ensure your financial strategy stays aligned with your priorities throughout life.
Planning Ahead for Peace of Mind
Peace of mind comes from planning ahead. Yes, it is possible to outlive your savings, but with proactive, personalized planning, longevity risk becomes a manageable part of a well-designed financial strategy.
At PYA Waltman Capital, we help individuals and families develop comprehensive financial plans designed to support long lives, evolving goals, and lasting peace of mind. By aligning financial resources with personal values and long-term objectives, we help clients move forward with confidence.
If you’re uncertain how your current plan addresses longevity risk, a thoughtful strategy can provide clarity, confidence, and greater control over your financial future.
Disclosure
PYA Waltman Capital, LLC (“PYAW”) is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about PYAW's investment advisory services can be found in its Form ADV Part 2, which is available upon request. Information contained within should not be construed as specific tax or investment advice. PYA-26-02
