You're More Likely Than Ever to Live to 100. But It Will Cost You

In the next 30 years, the centenarian population is set to quadruple, but living to 100 could have severe costs on seniors and the economy.

The number of Americans age 100 or older (centenarians) will more than quadruple over the next three decades. While today there are 101,000 centenarians in America, the number will grow to 422,000 in 2054, according to the Census Bureau's projections.

Gradually, the centenarian population has been rising since 1950, when only 2,300 Americans older than 100 were estimated to be living. But there's one negative result of Americans living much longer than expected: It brings a huge financial cost.

For seniors who end up living to 100, a substantial financial cushion will be necessary to fund their full retirement. There will also be extra health care expenses, long-term care and possible daily living cost increases, according to Keisha Blair, an economist and founder of the Institute on Holistic Wealth.

"In recent years, the prospect of living to 100 has shifted from a rare occurrence to a plausible reality for a growing number of individuals," Blair told Newsweek. "It's called the 'Longevity Revolution.'"

Most centenarians—roughly 78 percent—are white women, and this is likely to continue, according to Pew Research. The main difference is there will be more 100-plus-year-olds seniors in the country.

Today, about 62 million seniors live in America, making up 18 percent of the population. In three decades, however, that's anticipated to climb to 84 million, or about 23 percent of the population.

But in order for Americans to live to age 100 without financial strain, they need to get prepared and take a hard look at their finances. Instead of planning their retirement funds to last for 20 years, financial advisors now advise 30, 40 or even more years.

"Traditional retirement plans may not adequately account for a century-long life," Blair said. "Seniors are faced with the challenge of ensuring their financial nest egg is sufficient to cover not only basic living expenses but also potential health care and assisted living costs. Relying solely on pensions and Social Security may no longer be a sustainable strategy."

Blair said the best retirement plans can be stress-tested so you see what would happen if you live to 80, 85, 95, 100 or longer.

"Nowadays, if you earn a six-figure salary and expect a similar lifestyle in retirement, saving the maximum may not be sufficient," Blair said.

Alex Beene, a financial literacy instructor for the state of Tennessee, said even some of the more well-prepared seniors are underestimating their expenses for an extended life span.

With the current home market, Beene said it's harder for this generation to downsize. Many seniors also think Medicare will cover any necessary medical expenses, but they often require additional insurance and out-of-pocket costs.

"It's going to be difficult," Beene told Newsweek. "The best strategy is going to be buying goods and services with longevity in mind. American culture is accustomed to major purchases that are used for a few years and then discarded.

"With people living longer and many of those final years being ones they'd prefer not to work in, it's pivotal to start thinking about homes, cars and other large-ticket items that can work for them over time and not against them."

The Real Cost

Assisted living homes will become increasingly vital as Americans live longer, said Patrick Mish, the co-founder and CEO of SilverStay, a tech-enabled platform with data on assisted living homes. But it will likely take up all of seniors' Social Security and a huge chunk of their pension or retirement, if they even have that, he said.

On average, in Maryland, Mish said assisted living racks up a $2,000 plus monthly cost. Multiply that by the number of months you live until 100, and you might be in trouble.

"Many Baby Boomers have not saved much money and will likely find themselves in a jam," Mish told Newsweek. "Living on Social Security income alone makes it tough to make ends meet."

There will also be a widespread societal cost to more people living to age 100 and above.

Emergency rooms could be flooded, and chronic conditions for the elderly will likely fall under the cracks, Mish said. Even the housing market could go into disarray.

"There will be unstable housing situations as rents continue to rise and affordable housing is a problem," Mish said. "You have people dealing with housing instability. This is an amplifier of medical expenses. It's a downward spiral."

There's also changes in store for the Social Security Administration itself, which is not financially designed to support Americans in retirement all the way to 100.

"We might see a shift in the job market, with more seniors working longer or returning to part-time work," financial adviser and Houston First Financial Group President Christopher Hensley told Newsweek.

"The rise in the number of people living to 100 isn't just a personal triumph. It's a societal call to action, prompting us to rethink how we support and integrate our senior citizens for the betterment of the entire community."