Plan for a 20-Year Horizon
At 80, it's tempting to shift heavily to conservative investments and draw down principal. But a healthy 80-year-old has a 15–20 year life expectancy on average — and significant upside risk if longevity runs in the family. Some equity exposure remains appropriate to prevent inflation from eroding purchasing power over two decades.
Address Long-Term Care Head-On
The average long-term care need begins around age 80. Home health aides, assisted living, and memory care are the three major cost centers. The average nursing home stay costs over $90,000/year. Options: long-term care insurance (ideally purchased in your 60s), hybrid life/LTC policies, self-funding via dedicated reserves, or Medicaid planning for those with fewer assets.
Simplify Your Financial Life
Consolidate accounts. Confirm beneficiary designations. Ensure trusted people know where everything is and how to access it. The cognitive load of managing complex finances increases with age — simplification now prevents crises later.
Structure Encore Work Thoughtfully
If you're working in your 80s by choice — consulting, advising, creative work — structure it to protect Social Security and Medicare benefits. Earned income above certain thresholds can affect Social Security payments and trigger Medicare IRMAA surcharges. Know the thresholds before you sign contracts.
Get Your Estate Documents Current
Wills, trusts, powers of attorney, healthcare directives — these need to be current and accessible. Outdated estate documents are the most common source of family conflict and financial loss after death. Review every five years or after any major life change.