Most Americans Expect to Live Longer, Still Retire Around 67

More than half (54%) of Americans say it’s their goal to live to 100, while generally still expecting to stop working full-time around the standard retirement age of 65 to 69, according to a new study from Corebridge Financial and the Longevity Project, a research and advocacy group partnered with organizations including Corebridge, the AARP and the Stanford Center for Longevity.

The desire to live longer and healthier lives is driven in large part by the desire to spend more meaningful time with friends and family (72% of respondents) and have new experiences (65% of respondents), says Terri Fiedler, president of retirement services at Corebridge Financial. But a longer life will also mean more planning and budgeting to make those goals a reality, she and the researchers note.

Terri Fiedler

“The truth is that people don’t tend to think that much about their finances or planning,” Fiedler says. “We often spend more time planning for a vacation than we do planning for retirement.”

Fiedler notes that, despite early and mid-career generations envisioning longer lives at higher rates—63% of Gen Xers want to live to 100, and 59% of Millennials desire the same—there is a disconnect between that goal and their desire to quit work at today’s standard retirement age.

A plurality of people (40%) still plan to retire by age 65 to 69, meaning a potential for at least three decades in retirement, according to the survey. Of the remaining 60%, 26% believe they will need to work past age 70, 22% expect to retire between ages 62 and 64, and 12% envision quitting between ages 50 and 61.

Money Woes

Those desires, however, seem also to be causing financial anxiety, according to the findings. Fiedler notes that the research showed the majority of people (66%) fear running out of money in old age more than they fear death itself (34%). This, Fiedler says, is where employers can help participants by ensuring they have access to financial education tools, resources and financial advisers when applicable.

“Living to 100 and having a long life should be a rewarding experience,” she says. “To help clients remove some of that fear and anxiety would go a long way and might improve the number of people saying they want to live to 100, because they would feel more comfortable with the idea that they can afford to do it.”

Retirement plan providers, sponsors and advisers have a key role to play in helping people both reduce their financial anxiety and meet their goals—but the individual, of course, plays a role as well, she says. That’s where advancements in technology and improved workplace resources can contribute, not just in making planning available, but in improving engagement.

“Workplaces can host webinars on retirement, host workshops and provide planning tools,” she says. “They can consider participant rates, contribution rates, the demographics of their employees and work toward the personalization of messaging, depending on where someone is in their retirement planning.”

Access to an individual financial adviser beyond the plan, in Fiedler’s view, is also key to helping people reach their goals. Those professionals can act as a “coach” for a person to work through planning for things such as health care costs, or if there’s a market dip that affects funds intended for retirement.

“A financial professional does add the value of guiding people on how much you can put into retirement funds, which account to draw from first or whether to buy an annuity and which kind,” she says. “Beyond that, they can just help people feel more confident in those decisions.”

Personal Attention

Corebridge has a national network of advisers available to its plan sponsor clients—but Fiedler notes that not all plan sponsors feel comfortable referring participants to individual advisement. Instead, they may only offer up financial education within the plan and let participants make their decisions from there. Corebridge, Fiedler notes, will “respect the plan and their wishes” in those cases.

Whatever direction a plan sponsor takes, however, she notes that there is much work to be done, as people expect to, and potentially do, live longer. She points to longevity research that found only 24% of respondents think their current investment will last at least 30 years or as long as they need.

“That is a remarkably low number,” Fiedler says.

Meanwhile, 27% of respondents were very confident or extremely confident that they will not outlive their retirement savings, and 36% were very confident or extremely confident in their ability to manage their retirement savings to provide income for as long as they live. 

The white paper, “Funding Longer Lives,” listed action steps for individuals to work with their employers to prepare for longer lives. These included “refreshing their skillset, contributing to retirement savings plans, taking advantage of retirement education and engagement programs, and, in some cases, accessing financial professionals.”   

The study was conducted online May 2 through 11, 2023, by Morning Consult, among a sample of 2,284 U.S. adults ages 22 to 75, with household incomes and assets of at least $35,000 each.

Corebridge had more than $380 billion in assets under management and administration as of December 31, 2023.