longevity risk

So, I was thinking about retirement savings today. An article in the NY Times talked about the (horrifyingly low) median amount of retirement saving the average boomer has socked away.

Found a couple of relevant articles:

1) from FDIC: Outlook Spring 2006

There are many risks to retirement saving, for example, inflation. Another one I found particularly interesting was the concept of "longevity risk". Yep, with increased and increasing progress in health care and health science, our savings are subject to, I guess, bring outlived.

2) From July of 2006, an article from Marketwatch: America's savings hoax exposed

The point of this article seems to be that many of us are willfully blind about our savings posture, and important factors in society encourage us in this blindness, as, from the subtitle:

"Politicians, bankers and CEOs all want you to spend, not save."

What follows are a number of scary quotes and observations about our savings. And the theory that only a catastrophe could bring us to our senses.

Ironically, some of the scientific research I've been following recently demonstrates optimism about the possibility of healthy life extension. I guess we better adjust our financial models and savings plans as well. Or, what the heck, go with the 50" plasma high-def.