More than half (54%) of Americans in a new study from Corebridge Financial and The Longevity Project say it’s their goal to live to 100. That would likely mean a three-decade-plus retirement, which will no doubt strain the finances of many hitting that century milestone.
“Individuals need the right financial strategies and solutions to help ensure they can pursue quality of life without outliving their money.”
Corebridge Financial’s Bryan Pinsky
Despite wanting to celebrate a 100th birthday, many do not expect to delay their retirement to fund longer lives, as a four in 10 still plan to retire between ages 65-69, opening the door to that potential 30+ years in retirement.
While 26% believe they will need to work past 70, a smaller number (22%) expect to retire between ages 62-64, and only 12% between 50-61. When it comes to retiring early (ages 50-61), Generation Z is the most optimistic, with 17% seeing this as a possibility.
“A longer life presents exciting new opportunities but will require thoughtful planning and purposeful action,” said Bryan Pinsky, President of Individual Retirement at Corebridge Financial. “Balancing the age you want to retire with your financial situation can be challenging. Individuals need the right financial strategies and solutions to help ensure they can pursue quality of life without outliving their money.”
Fear of outliving your money
Today’s and tomorrow’s retirees could well spend more than 30 years in retirement, but the prospect of living a long life is tempered by financial worries. Two-thirds of Americans (66%) fear running out of money more than death, and these concerns appear to be rooted in assessments of and expectations for their retirement savings. Related findings include:
- Only 24% think their current retirement investments will provide them with retirement income that lasts more than 30 years, or as long as they need
- Only 27% are very confident or extremely confident that they won’t outlive their retirement savings
- Only 36% are very confident or extremely confident in their ability to manage their retirement savings to provide income for as long as they live
“Living to 100 is an incredible milestone, but getting there should be cause for celebration rather than a source of financial stress,” said Pinsky. “One of the best ways to take action is to work with a financial professional to help prepare for the future you are envisioning. That professional guidance, along with financial education and lifetime income solutions, can help you plan for and enjoy your retirement.”
Individuals who work with financial professionals are much more likely to say their retirement readiness has increased from three years ago, with 40% for individuals who have a financial professional, compared to just 22% for those without. Further, those who work with a financial professional are more likely to say they expect to be able to retire at an earlier age.
Nearly three in four respondents (72%) say having a source of guaranteed monthly income beyond Social Security would make them feel more confident about having enough money to live comfortably throughout retirement. Securing lifetime income is a priority for 92%, with 65% saying it outweighs other financial priorities.
Employers can play key role
The “Funding Longer Lives” white paper from Corebridge Financial and The Longevity Project outlines action steps that individuals can take through their workplace to help prepare for longevity. That can include refreshing their skillset, contributing to retirement savings plans, taking advantage of retirement education and engagement programs, and, in some cases, accessing financial professionals.
“Regardless of how long an individual decides to work, they should take full advantage of the financial planning opportunities available through their employer,” said Ken Stern, Founder and Chair of The Longevity Project. “At the same time, there are opportunities for flexible work, job sharing and even second-act careers, all of which can help fund longer lives with the added benefit of helping people stay engaged and energized for many more years.”
Corebridge launched its Action Planner Series for individuals and financial professionals last year. The ongoing series provides educational resources, tools and insights to help people take action in specific areas of their financial lives. Topics include longevity, retirement income, Social Security and Medicare, as well as content designed specifically for women.
Corebridge is also the corporate sponsor of Season 5 of the Stanford Center of Longevity’s award-winning longevity podcast, “Century Lives.” This season, “The Retirement Ladder,” tells the stories of eight employees from the same workplace and their very different views on how and when they will retire.
With more than $380 billion in assets under management and administration as of Dec. 31, 2023, Houston-based Corebridge Financial is one of the largest providers of retirement solutions and insurance products in the United States.
SEE ALSO:
• Half of Millennials Want to Retire as Soon as They Can Afford It —And Think They Will
• Participants Look Forward to ‘Non-Traditional’ Retirements
• Longevity Planning Across Generations
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
