Imagine you, or someone you love, living well into your 90s or beyond. What does that mean for your finances, your health, your lifestyle? Welcome to the reality many planners call the 100-year life.

Longer lifespans are no longer a fringe scenario; they’re becoming the norm. But while we plan for retirement, many plans still assume life expectancy of 80 or 85. That mismatch can lead to serious shortfalls later in life.

Let’s unpack what this means, and what you can do about it.

Longevity Is Changing the Game

According to RBC, average life expectancy in Canada now exceeds 81 years, and more people are living into their late 80s, 90s, or beyond. In fact, some actuarial projections show that for many in their 60s today, there's a 25% chance that one partner will live to age 98.¹

Longer lives are a blessing, more time to enjoy family, experiences, and personal growth. But they also raise the risk of outliving your savings, especially if your financial plan wasn’t built for those extra decades.

What’s Different About the 100-Year Life?

Here are some key shifts you’ll want in your mindset (and your plan):

1. Stretch Your Time Horizon
   Most financial plans target retirement until age 85. To be safe, plans now need to stretch to 95 or even 100, especially for healthier, well-resourced retirees.
2. Expect Rising Costs in Later Years
   Health care, long-term care, assisted living, home modifications—these aren’t small line items. As people age, these expenses can grow substantially.
3. Change Your Withdrawal Strategy
   A standard “4% rule” might not cut it over 30+ years of retirement. You may need more flexibility—reducing withdrawals in down markets or building income streams that last longer.
4. Build in Optionality
   Your life will evolve. What if you want to move later, downsize, or fund unexpected needs later? Your plan should adapt, not lock you in rigidly.

Four Planning Moves to Make Now

To build a plan that holds up over a century-long life, here are four concrete shifts worth making:

1. Plan on Longevity, Not Average Life Expectancy
When setting assumptions, use conservative mortality assumptions. A shorter death age could be worse than a longer one, because it means your money went unused. RBC’s longevity discussions highlight this risk.

2. Treat Health as Part of Your Portfolio
Your physical and mental health are financial assets. Investing in prevention—nutrition, movement, cognitive care, can reduce medical and personal care costs later. As one planning firm put it: “You don’t want your joy to run out before your money does.

3. Layer Income Sources
Don’t rely solely on one source (e.g. investments or pension). Consider combining:

• Guaranteed income (annuities, pensions)
• Withdrawal from investment portfolios
• Insurance or long-term care riders
• Home equity or reverse mortgages

4.Revisit Your Insurance Strategy
In a world of long lives, term insurance may not cut it. Permanent life insurance or policies with cash value might give more flexibility. Some insurers now offer longevity or hybrid life-and-care policies aimed at bridging gaps in late life.

A Real-World Check

It’s easy to imagine we’ll never need all these later-life strategies. But here’s what the data says: the number of Canadians aged 85+ grew by 12% between 2016 and 2021, and the number of centenarians is rising too. That’s a signal, not a warning, that longevity must be baked into our planning.

Many planning tools and guidelines are adapting too. Financial guidelines from FP Canada now emphasize reviewing long-term assumptions (10+ years) and stress testing plans under varied scenarios.

Final Thoughts: The Long Game Wins

Planning for a 100-year life isn’t about pessimism; it’s about preparing smartly. It’s a shift from “Will I run out of money?” to “How do I ensure I thrive in later decades?” That means being realistic about costs, building flexibility into your plan, and treating your health and wealth as partners in a long journey. If you’re ready to future-proof your retirement, I can help you think through longer horizons, smarter income layering, and resilient strategies built for 30, 40, or even 50 years of living.