Retired for how long? Worker expectations for how long they’ll live in retirement
By Paul J. Yakoboski, Annamaria Lusardi & Andrea Sticha
The influence of perceptions is noteworthy given that one-third of adults underestimate general life expectancy
among 65-year-olds (and an additional one-quarter respond “don’t know” when asked). Workers who expect
relatively short lifespans due to misperceptions about general life expectancy are at risk of accumulating inadequate
financial resources for retirement. Their retirement planning horizon is “too short.” In addition, those with shorter
expected lifespans appear less likely to plan and save for retirement. For example, about one-half of workers who
expect to live fewer than 10 years in retirement are saving on a regular basis, compared with over 70% of those
who anticipate a retirement of at least 20 years. Also, an intent to annuitize some retirement savings is 77% more
common among savers who anticipate a retirement of 30 or more years (23% are likely to do so) compared with
those expecting a retirement of fewer than 10 years (13%).
Planning and preparing for retirement, and subsequently living in retirement, should be grounded in expectations
based on accurate information, as well as an understanding of the uncertainty involved.
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