New research finds that American seniors, already postponing retirement, are now dying sooner

by Darwin Bayston, CFA | November 06, 2017 Leave a Comment

New Findings In RetirementA new report issued by the Society of Actuaries found that the age-adjusted mortality rate in America actually rose 1.2 percent from 2014 to 2015, the first increase since 2005 and just the second increase of more than 1 percent since 1980. Specifically, the report documented that pension plan participants – Americans in retirement – had a decline in their life expectancy of 0.2 years.

This news that Americans are dying sooner comes on the heels of other findings that the health of American seniors is on the decline. This includes higher rates of obesity, an uptick in seniors suffering from cognitive declines and the surging proliferation of substance abuse in our country.


Meanwhile, as Bloomberg reports: “At the same time that Americans’ life expectancy is stalling, public policy and career tracks mean millions of U.S. workers are waiting longer to call it quits. The age at which people can claim their full Social Security benefits is gradually moving up, from 65 for those retiring in 2002 to 67 in 2027.”


So our seniors are postponing retirement, primarily for financial reasons, but unfortunately more of them are experiencing a decline in health and ultimately a shorter lifespan than what was projected for them in recent years. Clearly, it’s more important than ever that you are treasuring every day in the golden years and making the most of every opportunity to visit grandkids, see things you always wanted to see and enjoy as much time as possible with the people who mean the most to you in life.


Some of those things require money . . . and may in turn require some creativity to generate the cash you need to pay off bills, finance vacations or deal with health care expenses. One possible source of cash might be to explore the possibility of selling an unwanted or unaffordable life insurance policy lying around in a file cabinet for years.


The sale of a life insurance policy to a third party – for more than the policy’s cash surrender value – is known as a life settlement transaction. A policy owner receives a cash payment, while the purchaser of the policy assumes all future premium payments and receives the death benefit upon the death of the insured. Candidates for life settlements are typically aged 70 years or older, with a life insurance policy that has a death benefit or at least $100,000, and those seniors who sell a policy can obtain roughly seven times more money than the cash surrender value of the policy.

To learn more about life settlements, how they work and if you’re eligible, call the LISA office at (888) 521-8223 and we’ll be happy to answer your questions.