Longevity literacy is a key factor in figuring out how much you can spend in retirement. Most people don’t realize how far out their retirement strategy should last.
A common worry among U.S workers is running out of money in retirement. As TIAA mentioned in their article You’re probably going to live longer than you think. Here’s why that matters, no one has a crystal ball to tell us how long we will live but having a realistic idea will make your retirement a lot more enjoyable.
Research shows that many Americans are missing this key factor of their retirement planning. How knowledgeable are you about life expectancy? Here is a pop quiz to find out:
What is the average life expectancy for a 60-year old man in the US?
- About 16 more years (age 76)
- About 22 more years (age 82)
- About 31 more years (age 91)
What about for a 60- year old woman?
- About 19 more years (age 79)
- About 25 more years (age 85)
- About 31 more years (age 91)
If you answered “2” to both questions, congratulations! According to a TIAA Institute survey, you are among the few to get it right. This year, for the first time, the study included questions tied to longevity, and the results were worrisome: Only 37 percent of Americans answered correctly, 28 percent didn’t know, 25 percent underestimated life expectancy, and 10 percent overestimated.
Financial literacy, longevity knowledge, retirement readiness, and retirement satisfaction are all connected. Many individuals across a wide array of age groups don’t know how many years of life expectancy to build into their retirement planning. Without this important factor, many workers risk saving too little or spending their retirement funds to quickly once they retire. With many Americans living well into their 90s, retirement savings must stretch further than in the past. TIAA has the resources to assist in helping you prepare for retirement. Don’t wait until it’s too late to find out you are not saving enough to meet your goals. Contact TIAA to set up your one-on one with a TIAA Financial Consultant.
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