How long does my money need to last?

Longevity is not just about living longer. It also raises a very practical question: how long does my money need to last? In the past, financial planning often focused on education, work, family and retirement. Today, another phase of life is becoming more important: the years after conventional working life, but before what we traditionally think of as old age.

Many people remain active during this phase: they contribute to society, support others, invest more deliberately or take a more hands-on approach to their wealth. At the same time, they may also need to plan for the possibility of a longer period of care later in life.

The planning challenge is therefore clear: how can wealth remain flexible over a longer life? Wealth should fit people’s lives, not the other way round.

We are at a turning point because several developments are converging. Life expectancy has risen over the long term, society is ageing and more wealth is being passed on, particularly in western Europe. A significant share of wealth is now held by the 70-plus generation.

At the same time, family structures are becoming more complex. That makes succession planning more demanding. People who wait until they feel there is a clear reason to act often lose valuable time. Good wealth planning needs conversations, clarity and sometimes the courage to ask difficult questions early.

Many start with a very personal question: how can I protect my standard of living if retirement lasts much longer than expected? From there, the conversation quickly broadens. Who do I want to provide for? What responsibility do I have towards my family? What should happen to my wealth if I can no longer make decisions myself?

For entrepreneurial families, the picture is even more complex. It is not only about private wealth, but also about responsibility for a company, employees and the next generation. Family wealth, business assets and roles within the family need to be clearly defined. Otherwise, conflicts can arise precisely when quick decisions are needed. That is why the starting point is not a product, but an understanding of the family’s overall situation.

I would say: that is precisely the right time to start. The earlier people start, the more options they have. Wealth planning is not a one-off appointment for later. It is a process. It should be reviewed regularly because life circumstances, markets, family situations and goals change.

It is similar to health. Many people pay attention to nutrition, exercise and preventive check-ups because they want to age well. A regular financial check-up can be just as useful. It shows whether a plan still fits someone’s life.

The problem is that reality is often different. One in four people over 50 underestimates their average life expectancy.

One in four people over 50 underestimates their average life expectancy.

If retirement lasts 25 or even 30 years rather than the 20 many people plan for, their income and assets need to stretch much further. Over many years, inflation and the cost of care later in life can erode financial security more than people realise.

Demographic change adds to the pressure on state pension systems. Reform proposals with a stronger capital-market component, as we are currently seeing in Germany, are broadly a step in the right direction. But retirement provision should be built on several pillars.

Our latest survey shows that many people have still not addressed this issue. More than 31 percent of Germans have not yet made any private provision for retirement, while 23 percent have made only limited provision.

Another issue is that many plans are too static. They are drawn up once and then left unchanged for years. But life does not stand still: relationships, families, markets, legal frameworks, health and careers all change.

Retirement planning is not just about pensions. It is about preparing for the different stages of a longer life.

Wealth is not an end in itself. It should help people live on their own terms – today, in retirement and, if they wish, across generations.

This page was published in September 2026