Barring any health issues, if you could buy a pill that made you live for a further 15 to 20 years, thus extending your life span to 110 to 115 years, would you buy it?

Ten years ago I would have said absolutely not – I have always been a firm believer in letting nature taking its course. However, fast forward a decade later and I now think that should that option be available – and presuming I could financially afford it and I had my health – then my answer would be most definitely: where do I sign up?

My husband and I agree we are in the last phase of our working career, and we need the next ten years to count. Our retirement goal is lofty, but not unachievable if we keep focused, and more importantly plan and execute it correctly. For us, it means ensuring we always have the means to cover our retirement regardless of our life span.

The biggest challenge we have when planning for retirement is where. I have a grand idea of spending time in Bermuda, Europe, Canada and Australia, enjoying an endless summer (I love the heat).

However, decisions need to be made sooner rather than later so our financial planning for retirement can begin, and structuring our assets to generate income that will support the goal is a critical part of our planning.

Furthermore, consolidating assets as best we can, and benefiting from better pricing structures and investment rates, etc, is a key part of this process.

Another complexity is the longevity gene. Sadly, those on my mum’s side tend to be short-lived, but those on my dad’s side tend to live longer; meanwhile my husband’s parents on both sides are from a long-living line. This means we have to be prepared for our finances to support a lengthy retirement.

In 2024, there is a significant risk of a person outliving their savings due to the average life expectancy of both males and females. With people now living well beyond the age of 90 and with the cost of living continuing to rise, it is increasingly critical that planning financially for retirement is done while you are in your working years.

So what happens when you decide to retire at 65 and you are still healthy at 95? Well, first of all, it would be great news that you have had so many years in retirement. However, it would also mean that almost one-third of your life had been spent retired, and for most people I would imagine there might not be too much left in the pot financially.

The crux of the issue is that the longer we live, the more we have to plan for it financially, and if your retirement exceeds 25 years then that is a big squeeze on the finances.

It’s wise to overestimate expenses rather than underestimate, making sure that you adjust for inflation (the rising cost of goods over time) during your retirement. Remember to include the cost of necessities such as food, utilities, transportation, pets, healthcare, gifts or donations, entertainment, travel, personal care and clothing.

Have you ever thought what would happen if you ran out of money as you hit your nineties but required nursing care? Who would pay for that?

On the hand, what if one spouse requires nursing care and the other spouse does not? This would mean different types of retirement funding are needed, one for the nursing home and one in the homestead – a financial double whammy.

Nursing care expenses, whether at home or at a facility, can quickly drain retirement finances. It is a reality that as people are living longer, the need for nursing care will be an ever-increasing requirement, especially as the elderly are living much longer than generations ago.

Nursing care costs, depending on where and what type of care is required, can range from $85,000 per year to very significant costs. If nursing care is needed for five to eight years, then that is a substantial amount spent, but what if you also had to factor in covering nursing care costs for two people? Ouch!

OK, enough with the doom and gloom of retirement expenses! What is equally important is how you are going to fund those expenses?

For those who are nearer to retirement and know where they are going to be, the next most important step is to start working on a budget. You need to be sure that you will have enough money to make good on your financial obligations and meet your retirement goals.

When drafting a retirement budget that works for you, take a realistic look at your current finances, current capital and precise sources of income during retirement.

You must also determine the growth of your savings, currently and during retirement, as well as all your expected sources of income throughout your retirement years. Setting the age at which you plan to retire allows you to calculate the amount of your pension benefit that you will receive when you reach that age. The main sources for retirement income are:

1, Company pension

2, Social insurance

3, Rental income

4, Savings and investments

5, Proceeds from a sale (downsizing a residence)

A large portion of your retirement funding will most likely be number four – savings and investments – and managing those savings and investments will be the key to longevity. While you are working you can afford to take some risks for the potential for a greater return; however, as you get closer towards retirement it will be crucial to start taking risk off the table and derisk your assets to preserve your capital.

Meanwhile, generating a modest return should be your investment mandate. Generating income from your investments with the goal of not touching the principle is a great investment strategy – it’s not an easy one, but achievable if you can structure it correctly, which will probably require an investment professional advising you.

Ultimately, living longer is not an issue if you have your health and you have planned your finances well.

• Carla Seely has 24 years of experience in the financial services, wealth management and insurance industries. Over the course of her career, she has obtained several investment licenses through the Canadian Securities Institute. She holds ACSI certification through the Chartered Institute for Securities and Investments, UK; QAFP through FP Canada; and AINS through The Institutes. She also has a master’s in business and management