Living to 100: Factors to Consider When Planning for Retirement

People are living longer, and reaching 100 is becoming less unusual. In 2026, Japan reported 107,677 centenarians, surpassing 100,000 for the first time. The United States is experiencing a similar trend. According to Pew Research Center, a projected 422,000 Americans will be 100 or older by 2054, more than four times the estimated 101,000 in 2024. Advances in medicine, healthcare improvements, and healthier lifestyles have increased life expectancy, with more people surviving to ages once considered exceptional.

Despite this, most people don’t expect to live to 100 and therefore don’t build a retirement strategy to last 30 years. While a long life certainly has its advantages, it can also come at considerable cost. Additional years bring more living and healthcare expenses, along with a greater likelihood of needing long-term care. An extended retirement also means navigating more stock market corrections, recessions, and other economic challenges. There are compelling reasons to prepare for a century-long life, including:

• Preventing financial burden on family members.
• Minimizing the demand on family for logistical support.
• Living independently for as long as possible.
• Having enough money to sustain a comfortable lifestyle.

What Could 35 Years of Retirement Cost?

Retiring at 65 and living to 100 means financing 35 years of expenses through savings, Social Security, and other income sources. A common guideline estimates retirement spending at approximately 80% of working income. According to the Census Bureau, the nation’s median household income is $87,460 in 2025. Using the 80% rule of thumb produces an estimated annual retirement budget of nearly $70,000. Over 35 years, that amounts to $2.45 million in cumulative expenses, excluding inflation and spending changes. This figure represents total expenditures, not the savings amount a household would need, and also assumes retirement at 65. However, Gallup’s 2026 findings show the average American retires at 61, potentially adding several years of expenses.

For most Americans, these numbers present a challenge. “Millions of Americans are at risk of outliving their savings,” said Catherine Collinson, CEO of the Transamerica Center for Retirement Studies.

How to Make Retirement Savings Last

Several strategies can help investors prepare financially for a retirement that lasts 30 years or longer.

• Delay retirement or continue working part-time. Early retirement may be unavoidable for some individuals. However, those concerned about having sufficient savings may benefit from working longer or maintaining a part-time job in retirement. Additional working years allow more time to save, potentially increase Social Security benefits, and reduce reliance on retirement assets.
• Wait to collect Social Security benefits. Full retirement age is 67 for those born in 1960 or later. Benefits increase by 8% annually for those who delay beyond full retirement age until age 70 (when the increases stop). The best claiming age depends on individual circumstances, including health, financial resources, and spousal benefits.
• Maintain cash reserves in an accessible, interest-bearing account. High-yield savings accounts and money market deposit accounts can provide ready access to cash while potentially earning higher interest than traditional savings accounts. These reserves can help cover unexpected expenses and reduce the need to sell investments during market downturns.
•  Stick to a budget. Although many retirees spend less than they can afford, those who live within their means, develop a strategy for drawing down their savings, and follow a budget are better positioned to manage their resources throughout retirement. Reviewing expenses periodically also allows for adjustments as priorities and financial circumstances evolve.
• Consider the tax consequences of retirement withdrawals and distributions. The order in which investors withdraw money from their accounts can affect their overall tax burden and the growth potential of remaining assets. A common strategy is to draw from taxable brokerage accounts first, allowing traditional and Roth IRAs time to grow. However, the most tax-efficient withdrawal sequence depends on individual circumstances, including income, tax brackets, and required minimum distributions.

Reaching 100 may once have seemed extraordinary, but today, planning for a retirement that extends well into one’s 90s is becoming increasingly prudent. With the prospect of a longer lifetime, an important question arises: How can individuals enjoy the wealth they’ve accumulated while keeping enough in reserve for the years ahead? At SHP Financial, our Retirement Road Map® helps individuals make thoughtful decisions about when and how to use their savings, accounting for income, investments, taxes, healthcare, and legacy goals. Contact SHP Financial today for a complimentary review of your finances and discover how a well-crafted financial plan can give you greater freedom to enjoy retirement, however long it lasts.