A recent estimate revealed that the life expectancy of an average American falls at 79. Two years ago, around 72,000 individuals have reached over a hundred years old and this year, the figure is expected to exceed 370,000. Separately, only 4% of financial advisers account for clients who were able to hit 95-99 years, making those who fall or exceed this range vulnerable to possible shortage of funds. While a longer life is good, it may also pose as a conflict in terms of settlement savings, especially if what you have stashed falls short of your age. Here are six ways advisors can aid their customers in avoiding this.

Encourage a longer employment period Working longer is one good way of boosting your savings and reducing your retirement time, although a potential problem here is hindrance due to health issues. Consultants may present a demographic projection while urging their client to consider another job whether full or part-time, in a field of their choice.

Savings assistance

Among the biggest culprits of late settlement woes is not saving enough. Advisors must emphasize the importance of setting aside funds, and may use testimonies of people who went through the dilemma to highlight the seriousness of the matter.

Split assets into three

To counter the anxiety brought by uncertain retirement savings amount, create three accounts wherein the first one should have enough money to cover 2-3 years of spending. It can be invested through a money market of certificate of deposit to preserve the value. The second one should be sufficient for 3-10 years, while the last one if for a longer-term fund of over a decade, and can be invested in equities.

Postpone Social Security

Waiting until you're 70 instead of 60 to claim your Social Security benefits increases the payout by 76%. Moreover, working while topping up a 401(k) is also advantageous for prolonging your benefits.

Lower withdrawal rates

The traditional 4% is considered quite high for clients that go past 90, hence 54% of consultants recommend reducing the percentage to prevent them from running out of funds.

Longevity annuity

This type of annuity is a little similar to insurance as it protects against the possibility of outliving your stashed money. Its recommended buying age is at around your 50s or 60s, as payments don't begin until you're 85. The downside of this is if the person dies before the payouts, the annuity sum is lost.