Americans Embracing Possibility of Living to 100, Many Expecting Over Three Decades of Retirement

Rhea-AI Summary

New research from Corebridge Financial and The Longevity Project reveals that 54% of Americans aspire to live to 100, with family, friends, and new experiences being the top benefits of a long life. Despite this desire, many do not plan to delay retirement to fund longer lives, with financial concerns overshadowing the prospect of extended longevity.

Insights

Financial Analyst

The study highlighting that 54% of Americans aim to live to 100 years old while planning to retire between 65-69 has significant implications for financial services and retirement planning industries. The expectation of a lengthy retirement period, potentially lasting 30 years or more, underscores the need for robust retirement planning and investment strategies. The concern expressed by 66% of Americans about outliving their retirement savings suggests a growing market for financial products that offer long-term income security, such as annuities or tailored investment portfolios with a focus on longevity.

From an investment standpoint, the data indicates a disparity between retirement aspirations and financial readiness, with only 24% believing their retirement investments will last over 30 years. This presents a substantial opportunity for financial advisors and wealth management firms to engage with clients on more aggressive savings plans, diversified investment strategies and possibly later retirement ages to ensure financial sustainability. Additionally, the preference for guaranteed monthly income streams points towards an increased interest in products that can provide such stability, which may influence product development and marketing strategies within financial institutions.

Economist

The insights from the study have broader economic implications. The anticipation of longer lifespans without a corresponding delay in retirement age could lead to increased strain on public resources such as Social Security and Medicare. This demographic shift towards an aging population with extended retirement periods might necessitate policy reforms to ensure the sustainability of these programs.

Moreover, the expressed need for guaranteed income sources suggests a potential shift in consumer preferences from traditional lump-sum retirement benefits to more predictable, annuity-like payouts. Such a shift could influence the structure of pension plans and retirement benefits offered by employers, potentially leading to a greater emphasis on defined benefit plans or hybrid plans that incorporate elements of both defined benefit and defined contribution structures.

Market Research Analyst

Understanding the mindset and concerns of Americans regarding retirement readiness is crucial for businesses in the financial sector. The study's findings that only 27% are very confident they won't outlive their retirement savings and that individuals working with financial professionals report higher retirement readiness, highlight the importance of financial education and advisory services. Financial firms might use this data to tailor their marketing strategies, emphasizing the value of professional financial guidance and education in achieving retirement goals.

Companies could also leverage these insights to innovate and offer new products that align with the desires for guaranteed income, such as developing or promoting lifetime income solutions that appeal to consumers' need for financial security. The increased confidence associated with having a financial professional suggests that firms should also focus on building strong advisor-client relationships and enhancing the perceived value of professional financial advice.

New research from Corebridge Financial and The Longevity Project finds 54% want to live to 100 with a plurality still planning to retire by 65-69

HOUSTON--(BUSINESS WIRE)-- More than half (54%) of Americans say it’s their goal to live to 100, according to a new study from Corebridge Financial and The Longevity Project. Family, friends and new experiences are seen as the top benefits of a very long life, with 72% of respondents citing continued meaningful relationships with family and friends and 65% looking for more time to explore and have new experiences.

Despite wanting to celebrate a 100^th birthday, many do not expect to delay their retirement to fund longer lives, as a plurality still plan to retire between ages 65-69 (40%), possibly enjoying three-plus decades 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.”

Financial Concerns Tied to Longer Lives

Today’s and tomorrow’s retirees could 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 a 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.”

Helping People Take Action

Last summer, Corebridge launched its Action Planner Series for individuals and financial professionals. 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.

The 2023 Corebridge Financial Survey on Longevity was conducted online May 2-11, 2023, by Morning Consult among a national sample of 2,284 U.S. adults, ages 22-75, with household incomes and assets of at least $35,000 each. The Retirement, Longevity and the Future of Work Survey was conducted online April 12-15, 2022, by Morning Consult among a national sample of 2,202 U.S. adults, ages 25-75, with household incomes of at least $25,000 and at least $50,000 in investments.

This material is general in nature, was developed for educational use only, and is not intended to provide financial, legal, fiduciary, accounting or tax advice, nor is it intended to make any recommendations. Applicable laws and regulations are complex and subject to change. Please consult with a financial professional regarding your situation. For legal, accounting or tax advice, consult the appropriate professional.

Corebridge Financial and The Longevity Project are not affiliated.

About Corebridge Financial

Corebridge Financial, Inc. (NYSE: CRBG) makes it possible for more people to take action in their financial lives. With more than $380 billion in assets under management and administration as of December 31, 2023, Corebridge Financial is one of the largest providers of retirement solutions and insurance products in the United States. We proudly partner with financial professionals and institutions to help individuals plan, save for and achieve secure financial futures. For more information, visit corebridgefinancial.com and follow us on LinkedIn and YouTube.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240311023113/en/

Işıl Müderrisoğlu (Investors): investorrelations@corebridgefinancial.com

Matt Burkhard (Media): media.contact@corebridgefinancial.com

Source: Corebridge Financial

FAQ

What percentage of Americans want to live to 100 according to the research?

54% of Americans aspire to live to 100 based on the study by Corebridge Financial and The Longevity Project.

What are the top benefits of a very long life according to the research?

The top benefits of a long life identified in the research are continued meaningful relationships with family and friends (72%) and more time to explore and have new experiences (65%).

What percentage of Americans still plan to retire between ages 65-69?

A plurality of Americans (40%) still plan to retire between ages 65-69 according to the study.

What percentage of Americans fear running out of money more than death?

Two-thirds of Americans (66%) fear running out of money more than death based on the findings.

How many Americans believe their current retirement investments will provide income for more than 30 years?

Only 24% of Americans believe their current retirement investments will provide income for more than 30 years, as per the research.

What percentage of Americans are very confident in their ability to manage their retirement savings to provide income for as long as they live?

Only 36% of Americans are very confident in their ability to manage their retirement savings to provide income for as long as they live, according to the study.

How many respondents believe having a source of guaranteed monthly income beyond Social Security would make them feel more confident?

Nearly three in four respondents (72%) believe that having a source of guaranteed monthly income beyond Social Security would make them feel more confident, as highlighted in the research.