December 2023
15Dec

Playing the Long Game: How Longevity Affects Financial Planning and Family Caregiving

By Surya Kolluri, Janet Weiner & Mary Naylor Since 1935, when Social Security set the age to receive full benefits at 65, average life expectancy in the United States has risen by 17 years. This increased longevity has clear implications for financial planning, both in terms of the timing of retirement and the need to plan for a longer period of retirement. But there are less obvious implications as well, in terms of the likelihood and length of time that...

December 15, 2023
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13Dec

UK. Govt urged to adopt new policies to take advantage of increased longevity

A new government should introduce a range of new policies on retirement, health and social care, to release a potential “longevity dividend” worth half a trillion pounds, as well as deliver a range of social benefits, according to the International Longevity Centre (ILC). Policies outlined in its new white paper include an auto-enrolment (AE) savings scheme to run alongside AE pensions, auto-escalation of minimum AE contributions, and ideas to help self-employed and gig economy workers save for retirement. Other ideas floated...

December 13, 2023
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12Dec

The new longevity: Stanford center examines societal impacts of a population living longer

BY 2030, ONE in four Californians will be 60 years or older. By 2060, the percent of Californians in the 60+ age group will have increased three times faster than the total population. People are living longer than ever. Worldwide, the average life expectancy of a newborn has more than doubled since 1900, from 32 years to 71 years. Half of 5-year-olds in the United States today will likely live for 100 years or more. The Stanford Center on Longevity (SCL)’s mission is to...

December 12, 2023
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01Dec

Subjective survival beliefs and the life-cycle model

By Seung Yeon Jeong, Iqbal Owadally, Steven Haberman & Douglas Wright Evidence from panel surveys of households, collected over several years and in different countries, shows that people’s perception about their remaining lifetime deviates from actuarial data. This has consequences for consumption, savings and investment over an individual’s financial life cycle, and in particular for retirement planning and the purchase of annuities. We use data from the U.S. Survey of Consumer Finances to estimate subjective survival probabilities at different ages....

December 1, 2023
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November 2023
02Nov

Study finds lack of financial planning leads to higher risk of death

People who don’t plan financially for their future have an increased risk of dying prematurely, according to new University of Colorado Boulder research. The research found that procrastinating financial planning for the future isn’t only bad for the wallet, it can affect life expectancy. The study analyzed data from thousands of older adults living in the U.S. and England, according to a release. The two groups were asked about their planning horizons on spending and saving. The researchers later checked government...

November 2, 2023
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October 2023
12Oct

Don’t worry about global population collapse

The world’s massive human population is leveling off. Most projections show we’ll hit peak humanity in the 21st century, as people choose to have smaller families and women gain power over their own reproduction. This is great news for the future of our species. And yet alarms are sounding. While environmentalists have long warned of a planet with too many people, now some economists are warning of a future with too few. For example, economist Dean Spears from the University of...

October 12, 2023
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September 2023
28Sep

Longevity Risk: Retirees and Pre-Retirees Fear Declining Finances and Deteriorating Health in Older Age

Fewer than one in four age 50+ workers and retirees are very confident they will be able to maintain a comfortable lifestyle throughout their retirement (17%, 23%, respectively), according to Life in Retirement: Pre-Retiree Expectations and Retiree Realities, a new survey report released by nonprofit Transamerica Center for Retirement Studies® (TCRS) in collaboration with Transamerica Institute®. "Retirement brings freedom and time for pursuing personal passions. Our research finds that retirees are happy, purposeful, and have a positive view of aging. However, many...

September 28, 2023
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08Sep

Racial and Ethnic Differences in Longevity Perceptions and Implications for Financial Decision-Making

By Abigail Hurwitz, Olivia S. Mitchell & Orly Sade  Inaccurate perceptions regarding life expectancy can lead to suboptimal financial decisions with long-term consequences, including undersaving prior to retirement, and overspending during retirement. As prior research suggests that Covid-19 mortality has disproportionately harmed those with low incomes, African Americans, and Hispanics in the United States, we seek to determine whether subjective survival perceptions among these groups changed in a manner consistent with observed outcomes. We fielded two online experimental surveys of...

September 8, 2023
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05Sep

US. What Public Pensions Could Do for Private-Sector Retirees

Once upon a time, before the era of 401(k) plans and takeover capitalists eviscerating many company pension funds, defined-benefit pension plans were America’s primary supplement to Social Security. Back then, the actuarial assumptions were generally reasonable, even for the public pension systems, before some of the latter strayed down the path of unsustainable benefits promises and fishy math. Needless to say, times have changed, and nowadays the vast majority of Americans have very few guarantees of lifetime income other...

September 5, 2023
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August 2023
29Aug

Helping people overcome their lack of ‘longevity literacy’

Longevity risk continues to be a hot topic for advisors, especially as their clients continue to suffer from a lack of “longevity literacy.“ The TIAA Institute and the Global Financial Literacy Excellence Center at the George Washington University School of Business released data last week showing that American adults are overwhelming unaware of both their potential lifespans and the amount of money needed to cover them. Respondents were asked to identify the likelihood among 65-year-olds of living to 90 and the likelihood of...

August 29, 2023
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