Among the keys to a comfortable retirement is accumulating enough wealth to ensure you don’t run out of money while still alive. This requires familiarity with an average life expectancy; however, not enough American knows “longevity literacy.”
According to Yahoo News, 53% of U.S. adults have inaccurate information about life expectancy, which could “jeopardize their retirement preparedness.”
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Survey results showed 53% of U.S. adults have inaccurate information about average life expectancy. (Photo: Expectancy Life)
The TIAA Institute and George Washing University conducted a survey showing only 37% demonstrate “strong longevity knowledge.” More than 28% of the respondents have “poor longevity knowledge. Meanwhile, 25% of the respondents underestimate life expectance, and 10% overestimate it.
The TIAA-GWU said the findings are significant as it shows many Americans are financially literate, especially in the prospect of their retirement.
A 2021 Survey of Household Economics and Decision-making revealed that only 40% of non-retired adults have retirement savings, while 25% have no retirement savings. Additionally, 13% of non-retirees aged 60 and above have no retirement savings.
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According to GOBankingRates, other studies indicate that women have lower financial literacy than men but actually live longer. Annamaria Lusardi, an economist at GWU, said that women are aware that they live longer than men, but are not aware of how to deal with their living long. She advocates raising awareness of longevity literacy among women.
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