Will Your Retirement Savings Outlive You? Understanding Longevity Literacy Can Help

Shallon Weis |
Categories
Financial Planning
Retirement

As the cost of living rises, pensions decline, and Americans live longer than ever, the gap between what people have saved for retirement and what they think they’ll need continues to grow. According to Northwestern Mutual’s 2024 Planning and Progress Study, the median retirement savings in the U.S. is just $82,000—far below the $1.5 million Americans believe they’ll need to retire comfortably.

At Bradford Financial Center, we believe it’s time to rethink how you plan for retirement—and that starts with improving something called longevity literacy.

What Is Longevity Literacy?

Longevity literacy is the ability to realistically understand how long you’re likely to live and how that lifespan will impact your retirement planning. It’s more than just knowing your life expectancy—it’s about:

  • Understanding the odds of living past a certain age
  • Anticipating the income and healthcare costs that come with a longer life
  • Adjusting your financial plan so your savings last as long as you do

In one study by the TIAA Institute, most American adults couldn’t accurately guess the life expectancy of a 60-year-old. That knowledge gap can lead to poor financial decisions and premature depletion of retirement savings.

According to TIAA's projections:

  • A 67-year-old is expected to live another 23 years on average
  • There’s a 25% chance they’ll live 28 more years
  • There's a 10% chance of reaching age 100

That’s a long retirement to fund—and one more reason why accurate planning matters.

How to Strengthen Your Retirement Strategy

Bradford Financial Center works with individuals at every stage of life to design custom strategies that account for longer retirements. Here are a few tips to help build savings that last:

1. Increase Your Retirement Contributions

  • Aim to contribute at least 15% of your paycheck if possible
  • At minimum, contribute enough to receive your employer match
  • Consider auto-escalation tools to increase savings annually
  • Ask yourself not just “when do I want to retire?” but “what am I retiring to?” Your vision for retirement will shape how much you need to save.

2. Be Open to Working Longer

  • Staying in the workforce longer may add stability to your finances
  • Many retirees shift into consulting, part-time, or passion projects
  • Pew Research says nearly 20% of Americans aged 65+ are still working—almost double the number from 30 years ago
  • Those 65+ also report higher job satisfaction than younger generations

3. Invest for Your Life Stage

  • When you’re younger, your portfolio should be more growth-focused (think stocks)
  • As you near retirement, shift toward income-generating assets like bonds
  • Short-term bonds can help cover expenses in early retirement
  • Work with a financial advisor to balance risk and reward as you age

Bottom Line: Plan for a Retirement That Could Last 30+ Years

The expected retirement age has already risen from 60 in 1995 to 66 in 2022, and it’s likely to keep climbing. That’s why smart planning today—saving more, working longer, and investing strategically—can set you up for the long retirement journey ahead.

Need help getting started or adjusting your plan?

Bradford Financial Center is here to help you build a confident retirement strategy that lasts as long as you do. Contact us today to schedule a personalized consultation and take the next step toward a more secure financial future.