Worries About Funding Longevity
While Americans are optimistic about the prospect of living
an average 30 extra years, 70% feel financially unprepared to reach 100 and
beyond, according to “The Gift of Time,” a new study from Allianz Life
Insurance Co. of North America.
Millennials and Generation X have time on their side when it
comes to pursuing their dreams, but that gift comes with significant angst.
More than three-quarters (79%) of Gen Xers report feeling financially
unprepared for living a longer life, while 74% of Millennials have the same concerns. Baby Boomers are not
immune to worry either—57% said they feel financially unprepared.
When respondents were asked to finish the sentence, “Following your dreams is all well and good, but you need to have …,” the top two requirements chosen were “enough money” (57%) and “a good financial plan” (50%). The biggest regret reported—or potential future regret for Millennials—was not saving more (52%), which ranked above not traveling more (38%) and spending too little time with their children (32%).
As respondents considered their extra years, 45% said “uncertainty” most closely described their feelings about the future. This uncertainty is echoed by the fact that more than half (51%) identified “[not] having enough money to last my whole life” as a big potential problem when they thought about living to age 100.
“‘The Gift of Time’ confirms that having a solid financial plan addressing longevity can remove major barriers for many Americans, allowing them to take risks that ultimately lead to a more fulfilled life,” says Katie Libbe, vice president of consumer insights at Allianz Life in Minneapolis.
According to the study, more than half (51%) of respondents believed they would need to better plan their spending and saving, or to live more modestly, in order to fund all the things they want to do in life. More than one-third (37%) even acknowledged they may need to work longer/retire later to meet their financial needs.
To make the most of their 30 extra years, respondents said it was important to change how much they save, how they fund their entire life—including short-term goals—and the level of discipline they need to follow a financial plan.
