Demographics and Retirement Risks

May 23, 2024


The following presentation by New England Capital Financial Advisors, LLC (“NECFA”) is intended for general information purposes only.  No portion of the presentation serves as the receipt of, or as a substitute for, personalized investment advice from NECFA or any other investment professional of your choosing.  Please see additional important disclosure at the end of this penetration. A copy of NECFA’s current written disclosure Brochure discussing our advisory services and fees is available upon request or at

Demographics and Retirement Risks

Hi. This is Chris Beale with New England Capital and I want to talk about what I consider one of your biggest retirement risks.

It’s not the stock market or conflicts in the Middle East nor Ukraine nor even the upcoming elections. It’s demographics. Too many of one group and not enough of another. Specifically, too many old people and not enough babies!

At New England Capital we recently increased our life expectancies for retirement planning to age 95, and that may not be enough. In the 1930s retirement age was 65 but life expectancy for men was 58 and 62 for women. We still think of age 65 for retirement today but live expectancies have increased dramatically. Today life expectancy is 73.5 for men and 79.3 for women.  But if you’re a 65-year-old woman, you can expect to live another 20 years on average; and a 65-year-old man can expect to live another 18 years. 1 in 6 people in the US were age 65 or older in 2020. 

There were 7.8 million people aged 65 and older in 1935. Today that figure is 62 million according to the Pew Research Center. These are the averages. And everyone at New England Capital has heard me say many times; “Average people don’t walk through our doors”.  So, we plan for above average life expectancies.

Maybe you know someone who’s over age 100. There were 2,300 people over 100 in 1950. Today according to the US census Bureau there’s over 80,000 people over age 100. And they estimate that figure will more than quadruple to 421,000 in the next three decades.


Now let’s talk about babies. The global fertility rate will soon fall below the point of replacing the population. The replacement rate is estimated to be 2.2 babies for each woman over her lifetime. The Institute for Health Metrics and Evaluations at the University of Washington estimates the world population will peak at 9.7 billion in 2064, and then start declining

There are many reasons for the declining birth rates. The industrial revolution moved people from the farms to the factories. Advances in agriculture technology and less people needed for farming certainly has been a factor. Women became better educated and joined the work force. Other economic and social trends make it more common and acceptable not to be married or have kids.

If these two trends continue, strains on Social Security will persist, as will labor shortages that we saw during the pandemic. This could put more stress on our healthcare and retirement systems.

We will continue to focus on solutions to these societal challenges as we manage your accounts.  But please remember what’s important to you, whether you’re young or old. I often think of my pursuit of the proverbial three wishes: Health, Wealth, and Happiness. The Harvard study of Adult Development, one of the world’s longest and most continuous studies of adult life which started in 1938, has some surprising findings. The study found that close relationships, more than money or fame, are what keep people happy. Those relationship ties protect us from life’s inevitable problems and discontents. They can help to delay mental and physical decline and are better predictors of long and happy lives than social class, IQ or even genes.

So, as you continue to build wealth and maintain a healthy lifestyle, foster relationships that will raise your happiness level, too.

As always, please call or email us with any questions or concerns you may have. In fact, for my next vlog, I’d like to answer your questions. Please email me at with any general investment or financial planning questions you have on your mind. I look forward to answering all your questions next time.

Thanks, and make it a great day! 


Please remember that past performance is no guarantee of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by New England Capital Financial Advisors, LLC [“NECFA”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from NECFA. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. NECFA is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the NECFA’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.newenglandcapital.comPlease Note: NECFA does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to NECFA’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Please Remember: If you are a NECFA client, please contact NECFA, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.  Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.