As people continue to live longer and longer on average, running out of money at the end of life will become a bigger and bigger problem.
On a policy level, it means that Medicaid will have to spend more to care for impoverished elderly people, which has elder law advocates concerned about any attempts to cut or reduce the program.
On an individual level, this means that people need to plan to save more money than they might think is necessary, just in case they live longer than expected. Any excess left at life’s end can, of course, be distributed to heirs in an estate plan.
Long term care insurance could also ease some concerns for an aging population.