Dr. Richard C. Marston, Professor of Economics at the Wharton School at the University of Pennsylvania has written extensively on a variety of financial issues including corporate governance, hedge funds and foreign exchange. More recently he has cited the risks that retirees encounter, including investment risks (stock and bond market), inflation health concerns … in addition to rising health care costs.

"Longevity Risk," or the risk of outliving ones financial assets has been a focus of Marston’s work. Mortality tables state that someone who is 62 years old will, on average, live to age 85. If a husband and wife are both 62 years old, one of them will probably live until age 92.

As the baby-boomers age, we find a large and disproportionate number of seniors entering retirement; many can expect to live some 30 years after leaving the workforce.

So how do we prepare our lives in order manage "Longevity Risk"?

Dr. Marston has given us some guidance on how to help retirees in their later years. First, retirees must establish "Spending Rules" or how much can be spent.

This may require a good budget and in some instances, sacrifices."
Sited From: http://finance.wharton.upenn.edu/~marstonr/