Rethinking Longevity: Financial Planning & Lifelong Learning

One of the questions I often ask individuals in their 60s who wish to open an investment account is how long they believe they are likely to live. The answer is usually something along the lines of: "Since life expectancy in Israel is 83 and I'm 65, I'd say I have about 18 years left". Others attempt a more nuanced answer, distinguishing between men and women, noting that life expectancy is 81 for men and 85 for women. Accordingly, a 65-year-old man might estimate 16 remaining years, while a woman might estimate 20.

This, of course, reflects a fundamental statistical misunderstanding — and a double one at that.
The first and most significant error is failing to recognize that Israel's life expectancy of 83 is calculated at birth. This average includes infants who die before reaching one year of age, teenagers who die in accidents or by suicide, and many adults who pass away in their 40s or 50s due to cancer, heart disease, or other causes — sometimes violent ones. In other words, the average is composed of those who die young and those who live to advanced ages.

To maintain an overall average of 83, those who have already reached age 65 must, statistically speaking, live well beyond 83. Otherwise, the average could not hold.

In practical terms, a 65-year-old today should reasonably expect to live to at least 88–90 — and possibly longer. In fact, the older we become, the higher our remaining life expectancy.

To this statistical calculation we must add another important factor: life expectancy figures are based on historical data. Yet longevity continues to rise over time, thanks to medical advances, improved treatments, reduced air pollution (partly due to stricter environmental standards and cleaner automotive technologies), healthier nutrition, and greater public awareness of physical activity and preventive health.

When these elements are combined, it becomes clear that today's 65-year-olds may well live into their late 80s or early 90s. This reality significantly reshapes the way they should approach financial planning.

Responsible Approach toPreserving Resources
In recent years, groups informally known as "PIL" ("Parents Intend to Leave Less") have emerged. In essence, many retirees have decided to enjoy their wealth — traveling abroad, purchasing more enjoyable vehicles, and indulging themselves — rather than adhering to the frugal habits inherited from parents who endured the hardships of World War II and periods of austerity.

However, not everyone can afford such financial exuberance — particularly if they are likely to live much longer than previously assumed. What truly matters is planning financially with age 90 in mind, recognizing that there is a meaningful probability of surpassing it. This requires a responsible approach to preserving resources. Senior citizens should consider that their savings must potentially last another 25 years — and cover not only modest living expenses but also medical treatments.

The Importance of Digital Literacy
Another crucial aspect is digital literacy. Technological competence affects not only quality of life but also the safeguarding of one's financial resources. Many seniors hesitate to expose their technological weaknesses and therefore forgo both rights and opportunities.

Yet individuals at 65 often have time — and in many cases the financial means — to pay younger people to teach and assist them. One should not be overly frugal when it comes to acquiring knowledge, nor wait for favors or volunteers. The ability to navigate a computer, tablet, or smartphone — and the multitude of available applications — can provide significant advantages.

Some older adults struggle with learning new technologies and feel embarrassed; others argue that since innovations appear constantly, anything learned today will soon be replaced. What they may not realize is that persistent learning — even if it requires repeated practice — helps develop an understanding of the underlying logic of software and applications. After mastering the fifth or tenth app, confidence increases significantly. Not to mention the cognitive benefits of sustained mental effort.

Don't Be Shy to Ask
There is another important matter. senior citizens who are embarrassed to ask younger people to repeat themselves — because they did not hear clearly, because the explanation was rushed, or for any other reason — would do well to remember the ancient wisdom: "The shy do not learn". One should not hesitate to request clarification repeatedly, to hear an explanation again, or to work together toward understanding — even if someone might mock them behind their back. It is better to endure ridicule and know what to do than to appear competent while lacking the practical skills to operate essential tools simply out of embarrassment.

In conclusion, dear seniors: you likely have more years ahead than you assume. Do not hesitate to ask questions or to learn from younger generations. Through persistence and determination, you can demonstrate your value — and continue to grow.

One final recommendation for those who love life and wish to prolong it: A large-scale study conducted at a leading university found that individuals who regularly read books live, on average, 27 months longer than those who do not. So in addition to everything else, return to the last book you picked up. Finish it — and then move on to the next.

The author is a senior economist, the CEO of Dividend Investments, a portfolio management company