The number of Americans living to age 100 is expected to quadruple by 2054, but financial planning has not kept up with rising lifespans, putting millions at risk of outliving their savings, according to research from Nationwide Retirement Institute and the American College of Financial Services. The research showed that extending retirement by just five years raises the risk of running out of money by 41%—a risk that continues to grow as lifespans increase, especially for healthy, high-income retirees.

A separate survey from the Nationwide Retirement Institute on the same subject revealed that most Americans underestimate both their odds of living to 100 and the financial demands it brings. Only 29% want to live that long, citing health and money concerns, and about 75% fear outliving their savings. With inflation and lower projected returns, 40% now plan to delay retirement.

“Too many people underestimate how long they’ll live—and that blind spot can seriously undermine their financial security,” said Michael Finke, a co-author of the first study and the director of the Granum Center for Financial Security at the American College of Financial Services, in a statement. “We consistently see that those who plan for longevity feel more confident about retirement. The key drivers of that confidence? Working with an adviser, having access to guaranteed income, and building a plan that’s designed to last.”

Longevity Tools That Can Help
Longevity solutions exist, but the combined Nationwide Retirement Institute and American College of Financial Services survey indicated they are underused. Although 70% of Americans believe society is not prepared for longer lifespans, tools like long-term care insurance, annuities and guaranteed income products—many of which are now available through employer-sponsored retirement plans—can help.

The issue revealed is that these solutions are often misunderstood or overlooked, underscoring a critical need for better consumer education.

The Role of Expected Lifespan
A 2024 study from the TIAA Institute and the Global Financial Literacy Excellence Center explored how Americans think about longevity and retirement. The study examined how long workers expect to live in retirement, what shapes their lifespan expectations and whether these views influence when they plan to retire.

While expected retirement duration is closely tied to how long workers think they will live, the idea that longer lifespans lead to later retirements is not strongly supported, according to the study.

Most people surveyed, regardless of how long they expect to live, still plan to retire in their 60s. Even among those expecting to live past 90, only 29% plan to retire at age 70 or later. Statistical analysis showed only a slight connection. For every additional year of expected lifespan, retirement age increased by just one month. This suggests that factors like Social Security rules and cultural norms may influence retirement timing more than personal longevity expectations.

Retirement Length Expectations Differ Widely
According to estimates from the TIAA Institute, the median expected retirement length among today’s workers is 20 years. Slightly more than half (51%) of worker respondents anticipated spending at least two decades in retirement, while 20% said they expect it to last at least 30 years. On the other hand, 49% foresee a retirement shorter than 20 years, including 15% who expect it to last less than a decade.

Younger generations are the most optimistic about lengthy retirements: 26% of Millennial and 22% of Generation Z workers reported expecting retirements of at least 30 years, compared to just 17% of Generation X. Gender differences also stand out—54% of women reported expecting at least 20 years of retirement, compared with 48% of men.