Millennial workers are the likeliest to anticipate living 30 years or longer into retirement, but a recent study questions whether they’ll have enough savings to secure a comfortable lifestyle then.
The report by the TIAA Institute and the Global Financial Literacy Excellence Center finds that 26% of Millennials expect to live 30 years or more in retirement—the most out of all age cohorts surveyed. This group was also the likeliest to expect living to age 90 or older, at 39% compared to 31% for Gen Z and 30% for Gen X.
The findings show a critical break for educational and investing opportunities tailored to Millennial and Gen Z workers, TIAA’s report contends. “Workers need to think about how to maximize savings during working years, especially younger generations who can greatly benefit from the power of compounding interest and how an annuity can secure a potentially long life,” said Kourtney Gibson, CEO for Retirement Solutions for TIAA.
Others aren’t sure how long they’ll live in retirement and question whether they’ll have a shorter lifespan. Thirty-five percent of participants to TIAA’s survey underestimated their longevity, while 24% admitted not knowing how long they’ll live. According to TIAA, men tend to live until age 84 while women have a slightly higher longevity at 87.
“The findings in this report underscore a critical issue – many Americans are approaching retirement planning with limited knowledge of how long they are likely to live,” said Annamaria Lusardi, an economist from Stanford University and Academic Director of GFLEC. “By improving individuals’ longevity and financial literacy, we can truly enable and promote financial security and well-being throughout retirement.”
While the findings highlight the need for more education, 32% of respondents to TIAA’s survey did answer correctly when asked about the life expectancy of an average 65-year-old, and 32% got it right when asked about the likelihood of a 65-year-old living to age 90.
TIAA’s study is based on data from the 2024 TIAA Institute-GFLEC Personal Finance Index (P-Fin Index), which surveyed over 3,800 individuals across socioeconomic, racial, and age profiles.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.