One of the biggest uncertainties in retirement planning is how long you may live. Experts suggest ways to get the best estimate.

• The key to successful retirement planning primarily hinges on determining one crucial factor: My expected lifespan.
• Yet no one truly knows the answer to that question.
• Here's what experts say you should consider to best gauge your plans.

Experts advise that to efficiently plan for retirement, it is crucial to monitor your savings rate and the size of your nest egg.

Your life expectancy determines how much you need to set aside.

No one knows how long that figure will live, making them the most elusive.

"The uncertainty about the topic is uncomfortable, as nobody really knows," stated Lisa Schilling, director of practice research at the Society of Actuaries Research Institute.

According to research from HealthView Services, the financial industry commonly assumes an age of 95 as a default.

Inflation continues to disrupt retirement plans for older voters. Candidates who promise to safeguard Social Security are in high demand among this demographic. Workers in certain industries typically have higher 401(k) balances.

The Society of Actuaries and American Academy of Actuaries stress the importance of longevity instead of planning for a single life expectancy number.

The probability of living beyond one's financial resources is assessed through longevity risk measures.

"Schilling stated that if you plan on your money lasting until your expected life expectancy of 84, there is a significant surprise that you haven't yet discovered. He emphasized that there is a high probability that you may need your money to last longer than 84 years for various reasons."

Longevity estimates may bring surprises

The Society of Actuaries and American Academy of Actuaries have recently launched a free online tool for creating longevity illustrations.

What is the basic information required on an individual or a couple, including their age, sex, retirement age, smoking status, and general health description (poor, average, or excellent)?

The illustrations depict the likelihood of reaching specific ages and the number of years one may spend in retirement, based on the estimates of various organizations.

If you have already reached the age of 65, your life expectancy is likely to be even longer, according to Schilling.

She stated that the alternative version of the sentence could aid individuals in comprehending the full spectrum of options when devising strategies for how long their funds may sustain them.

Another surprise for couples is that the probability of at least one of them living to 90 increases.

Recent research from HealthView Services suggests that the financial industry's assumption of living to age 95 may be too optimistic.

Someone who is 65 years old today with no chronic conditions can expect to live to age 90 if they are a woman or age 88 if they are a man.

According to research, only approximately 5% of individuals over the age of 60 do not have any chronic health conditions.

Health status affects life expectancy projections

Individuals with chronic health conditions such as high blood pressure, cardiovascular disease, cancer, diabetes, high cholesterol, tobacco use, obesity or Parkinson's disease may have a reduced life expectancy.

The probability of a 65-year-old man with no chronic conditions living to age 95 or longer is 19.3%, but if he has high blood pressure, it reduces to 17.5%; if he has cardiovascular disease, it reduces to 15.8%; if he has high cholesterol, it reduces to 12.5%; if he is obese with a body mass index of 35 to 39, it reduces to 8.8%; if he uses tobacco, it reduces to 7.4%; if he is obese with a body mass index of 40 to 44, it reduces to 2%; and if he has diabetes, it reduces to just 0.4%, according to research.

The retirement funding needs of a 65-year-old man earning $100,000 in 2023 could be significantly impacted by the probabilities of his income replacement rate, which is 80%. If he lives to age 95, has a 6% annual portfolio return, receives Social Security benefits, and inflation is 3%, he would need approximately $1.1 million to maintain this rate, according to HealthView Services.

If the 65-year-old man has a chronic condition, his life expectancy will be lower, which could allow him to spend more of his retirement nest egg in other ways, according to HealthView Services.

The research found that reducing high blood pressure could increase life expectancy by nine years, allowing for $447,469 to be used for long-term care planning, emergency savings, money for heirs or other uses.

By quitting tobacco, he could potentially add 13 years to his life, resulting in a total life expectancy of 82 years, and free up $616,245. On the other hand, if he managed to control his diabetes, he could potentially add 16 years to his life, allowing him to spend a total of $727,947.

Experts suggest delaying Social Security retirement benefits or purchasing an annuity to increase monthly income for those who plan to outlive their assets.

How personalized numbers can help

Personalizing financial plans based on an individual's health status and its impact on their life expectancy can help improve their financial well-being, says Ron Mastrogiovanni, CEO of HealthView Services.

Mastrogiovanni stated that personalizing numbers during a planning process increases the likelihood of people taking action.

That doesn't necessarily require eliminating age 95 assumptions altogether, he said.

Knowing one's personal life expectancy can aid in planning accordingly.

Mastrogiovanni said that choosing a number doesn't mean you have to plan to it.

"You can choose to move out in four years or ten years, whichever makes you comfortable," he said.

"But at least you're working off an actuarial base number."