Are you aware of longevity risk in retirement planning?

The average Indian life expectancy is 70 years, but this hides substantial variation. With the medical progress we’re making, the odds are that you will live longer.

This is a critical input in your financial plan, and it’s always wise to assume a higher life expectancy.


Your financial plan should be built to survive both negative and positive surprises. Most people underestimate how long they’ll live and the money they’ll need in retirement.

So it’s best to assume you’ll live longer & invest more.

Of course, this doesn’t mean you have to be miserable to save more. There has to be balance in all things. But don’t underestimate the longevity risk. Be mindful of it when you are building your financial plan and make realistic assumptions.

A look at the historical all-India trend in life expectancy numbers;

A look at state-wise life expectancy numbers;

Source: RBI


inspite of the pollution & AQI - delhi has the highest life expectancy?

Guess what? The fund managers now have statistical evidence to show that their clients’ longer lives are the cause of their funds’ poor performance.

Since the market timings are getting extended, we don’t have to worry about it now. The added stress will affect trader’s mental/physical health, leading to lower life expectancy.

Great of NSE and other bodies to once again make a change which looks after the welfare of the retail traders. :+1:

One thing to note: Unless otherwise specified (and I don’t see the OP saying this anywhere), “life expectancy” usually means “life expectancy at birth”. So, e.g., the life expectancy for 2020 applies to kids who are born in 2020, not those of us on this forum who are reading this post!

Note that there is a positive correlation between these numbers and our own life expectancy; I just wanted to point out that the numbers quoted by the OP do not directly apply to us as they are. So the rest of the OP’s comments are indeed very pertinent and relevant to retirement planning: we will indeed live longer on the average, etc.