Re:People who live past 105 years old have genes that stop D...
by vidarh on Sunday May 09, 2021 @05:08AM
(#27094444)
Yes, but that is based on not knowing how long you'll live, which means you can't risk eating much into your capital.
But if you somehow could know exactly how long you'll live, it could be adjusted accordingly, and especially as you get closer.
E.g. to take an extreme example: If you know you only have 10 years left, then obviously you could just keep your money as cash to avoid market risks, and spend 10% each of your remaining years.
Even if it's not 100% certain, if you were able to get a very precise estimate, there'd be room for a lot better annuity rates on offer for people with a shorter life expectancy.
But if you somehow could know exactly how long you'll live, it could be adjusted accordingly, and especially as you get closer.
E.g. to take an extreme example: If you know you only have 10 years left, then obviously you could just keep your money as cash to avoid market risks, and spend 10% each of your remaining years.
Even if it's not 100% certain, if you were able to get a very precise estimate, there'd be room for a lot better annuity rates on offer for people with a shorter life expectancy.