How Advisers Can Help Close Longevity Literacy Gap

Experts recommend providing appropriate interpretation and practical implications of longevity terminology.


New research by the TIAA Institute revealed only 35% of respondents correctly identified the lifespan of a current 65-year-old, a slight drop from the previous year. Data from the 2022 Personal Finance Index indicated 37% correctly identified the lifespan of a 60-year-old.

“Unfortunately, poor longevity literacy cannot be improved by simply providing people with information. Terminology is an obstacle,” Annamaria Lusardi, a professor at the George Washington University School of Business, wrote in the report.

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TIAA’s researchers noted the importance of longevity literacy, as it is strongly linked to overall retirement readiness. Among respondents with strong longevity literacy, 50% reported that they had determined how much they need to save for retirement, compared to 32% of those with weak longevity literacy.

According to Lusardi, only one-third of adults understand the practical implications of the term “life expectancy,” which is the defined average age a specific population group will live to. Meanwhile, one-quarter of people think “life expectancy” is the age by which the vast majority of a group of people will die.

“Simply telling someone the life expectancy at age 60 or 65 or 70 will likely not help them,” the report stated. “In fact, the statement could even be misinterpreted in a way that is counterproductive. Additional information on appropriate interpretation and practical implications are needed.”

Earlier this year, Edelman Financial Engines founder Ric Edelman told an audience at a conference focused on longevity that longer lifespans mean people should be focused on investment management to get through retirement. He noted that incorrect longevity calculations can lead to mismanagement of retirement spending.

The TIAA researchers emphasized the need for more education among savers on longevity, noting that, “like financial literacy” generally, longevity literacy “matters for retirement outcomes.”

“Initiatives to improve longevity literacy alongside financial literacy can promote retirement security,” the researchers wrote. “Improved longevity literacy provides the most foundational component of any plan—an appropriate time horizon.”

According to the survey, just 12% of U.S. adults had strong longevity literacy, which the researchers determined as being able to correctly answer questions about 65-year-olds’ retirement planning horizon. However, 31% of adults had weak longevity literacy, which was indicated as having no understanding regarding the distribution of life expectancy of 65-year-olds.

The longevity literacy gap between men and women was also significant. Men were more likely to underestimate average life span at retirement age by 10%. Additionally, men exhibited weaker longevity literacy, at 32% of the respondent pool, while 29% of women exhibited weak longevity literacy.

The report was prepared by the TIAA Institute and the Global Financial Literacy Excellence Center at the George Washington University School of Business. Data was drawn from the 2023 Personal Finance Index survey, conducted in January on a sample of more than 3,500 U.S. adults, in conjunction with a TIAA report published in January that raised the issue of longevity literacy.

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