It is now common for people to live 20 or 30 years or even longer after retirement, not only because of longer lives, but because of earlier retirements, added George, who has interviewed more than 6,000 elderly people over 25 years. In her research of people 65 and older, George said she has come across an interesting paradox. Interestingly, it doesn't matter how much money they have. A financial planner told me a client lived his last 10 or 12 years convinced his money wouldn't last, and he denied himself things that would have made him comfortable. MetLife's Stevenson made a similar point.
People actually lower their standard of living significantly.
Today's older women are particularly ill-prepared to handle their finances in retirement, George said. They are less likely to have played an active role in financial decision-making. They are less likely to have earned pensions, and those that have tend to receive lower payments due to shorter work histories and lower-paying jobs. All of those problems are compounded because they live longer on average than their male counterparts, George said. Better products are part of what is needed to respond to the current and emerging needs of the elderly, George said, and many insurers are working to develop them in the form of immediate variable annuities.