* Survey shows many people want to live to 100
* Most would have to rethink their money management
* 85 is the new 65 for many people
By Jennifer Hoyt Cummings
Feb 22 If you knew you would be around to
blow out the candles at your 100th birthday party, would that
change how you manage your money today?
The answer was yes for three out of four affluent Americans
polled in a Merrill Lynch survey released Wednesday. Many will
make it there: if you're currently 65 and married, there is a 31
percent chance you or your spouse will live past 95, Merrill
said, citing research from the Society of Actuaries.
Living to 100 would be a good thing, according to 58 percent
of those polled in Merrill's bi-annual Affluent Insights Survey.
But the prospect of a long life is also causing anxiety. People
planning for their later years are thinking about holding off on
retiring and are reining in spending today.
"The word 'retire' and the number 65 had always been one in
the same," said David Tyrie, head of personal wealth and
retirement for Bank of America Merrill Lynch. "That's just not
the case anymore."
Merrill, which polled 1,000 Americans who had investable
assets of $250,000 or more, found that just over half said they
would rather retire later than make tradeoffs on their current
way of life.
Still, if necessary, most said they would make sacrifices
like trimming day-to-day expenses, purchasing fewer luxuries and
cutting back on their vacation budgets.
NO TIKI BAR
The age 65 no longer conjures images of walking out of a job
for the last time and heading for the Tiki bar in Florida. In
the survey, only 14 percent of those over the age of 50 cited
"hitting a certain age" as the factor that would most lead them
To accommodate for a longer life, 39 percent said they would
work at least part-time during retirement, while a quarter of
the respondents said they would retire closer to 85 than 65.
The rising cost of healthcare was named as the financial
issue causing the most anxiety, with some 79 percent saying that
was their top financial concern.
Tyrie said the concerns about healthcare should motivate
more advisers to learn more about how to help clients plan for
healthcare costs. Some 62 percent of the survey respondents over
the age of 50 said they have yet to estimate what healthcare
will cost them in retirement.
Merrill Lynch is rolling out an iPad app to help advisers
spark conversations with clients about healthcare planning, in
part by helping clients estimate how much money they need to set
The app is currently being tested by about 100 advisers and
will be rolled out to other retirement-focused advisers
throughout this year, a company spokesman said.
Tyrie likened an adviser to a primary care physician who can
refer out to specialists.
"Don't try to know the topic inside and out, just know where
to get the information," he said.