Longevity Is A Good Problem — If You Can Afford It

We’ve been trained to fear inflation. But the real silent disruptor of your financial plan isn’t paying Rs 200 per kilogram of onions, it’s time. The real risk for modern Indians isn’t outliving their money, it’s letting their money outlive its potential. Longevity, as it turns out, is a very good problem to have… if you’re paying attention.

According to India Data Map, India’s life expectancy in 2025 stands at 72.5 years. But this number tells only part of the story. Urban India clocks an average of 73.3 years, while rural trails at about 69.2 years. States like Himachal and Kerala are leading the pack with women expected to live well beyond 77. 

Retirement planning isn’t just about surviving, but truly living; Urban retirees now plan to stay professionally active past 60, with consulting, and second innings jobs coming into the mainstream. Even Feroze Azeez, Deputy CEO at Anand Rathi Wealth, adds, "The whole idea of retirement is also going to change. My boss is 69 and I wouldn’t want him to retire for the next 20 years. The more he works, the richer his mind stays."

Remember Hero Honda's iconic tagline - 'fill it, shut it, forget it'? If you think you can build a portfolio, leave it untouched, and let compounding work like auto-pilot, think again. "Buy right, sit tight is a good campaign, but you can’t be married to an instrument. Be married to equity as an asset class for life, but not to a specific scheme or stock," says Azeez.​

Not rebalancing can mean throwing away valuable compounding time. This risk is most acute for retirees banking on yesterday’s winners carrying them through much longer futures. 

Back in the ’90s, most people planned for 15-20 years of post-retirement life. Today, Azeez believes that a 35-year-old professional will likely need a portfolio that lasts 35-40 years beyond retirement.

Longevity has turned every financial formula upside down. The safe 4% withdrawal rule? Too generous. The idea that you can shift fully to fixed income at 60? Too risky. Longevity inflation means your money must work for twice as long, even if your salary doesn’t.

Ironically, as lifespans have stretched, investors have grown more risk-averse. Azeez calls this the biggest behavioural mismatch in modern finance, "If you’re living longer, your risk tolerance should go up, not down. Because your compounding runway has expanded."

It’s not just the longevity numbers; urban professionals are pushing the boundaries with 'second innings' careers. Whether it’s consulting, entrepreneurship, or teaching, the line between working and retiring is blurrier than ever. As per a 2024 survey by Wisdom Circle, over half of post-60 professionals in metros expect to keep working for at least a decade.​

Azeez nudges investors to ditch myths about shrinking their investments once the family heirloom is handed over, “"Asset allocation must extend beyond age 60, not shrink at it. Longer working lives mean compounding continues, and your portfolio must reflect both safety and growth."

If you’re going to live longer, your money needs to as well. And that’s where equity, not fixed income, becomes your most loyal long-term companion, according to Azeez.

"You need an asset that outlives you; one that grows faster than your expenses," says Azeez, “And the answer, across 50- and 100-year data, is equity." Equity, he argues, isn’t about chasing high returns, but about protecting longevity. It’s the only asset class that compounds in a way that matches a 30- or 40-year life expectancy post-retirement.

Tempted to chase last year’s top fund? Welcome to recency bias. Azeez calls recency bias 'the biggest bimari (sickness)' hurting Indian investors, highlighting how the urge to buy top performers and ditch duds can backfire spectacularly. "Mathematics says, don't look at the rear-view mirror. Hope is highest when the probability is least, and vice versa." 

Gold may glimmer in the short run, but over decades, equity quietly wins. "Gold protects. Debt preserves. But equity endures," Azeez says. "That’s why it belongs at the heart of any long-term plan." The point isn’t to abandon caution, it’s to redefine it. "People forget that fixed income stops compounding the day you stop reinvesting," Azeez adds. 

"Longevity is a good problem, if you can afford it. Make sure your money outlasts you, not the other way around," Azeez sums up, with a grin.

While urban India is busy planning careers and portfolios for their 70s, rural India faces a different reality - shorter lives, less access to financial products, and continued reliance on intergenerational support. For these families, essentials like emergency health cover and education funding are top priorities, but even here, rising longevity is beginning to force a shift.​ 

Catch the entire conversation with Feroze Azeez on Moneywise with Alex Mathew.

Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.