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Takeaways
- According to a new study by TIAA Global Financial Literacy Excellence Center and TIAA, one-fourth of U.S. millennials say they expect to live for 30 years or longer in retirement.
- The study found that 40% of millennial workers in the U.S. also expect to live until age 90 or beyond.
- The study found that most people in the U.S. are unaware of what the average life expectancy is.
The expected retirement period of a person is largely determined by how long they think they will live. In the U.S., millennials believe they will live longest.
A quarter of U.S. born between 1981-1996 millennial workers expect to live at least 30 years in retirement. Nearly 40% say they expect to survive 90 years or more. A study released on Monday by the TIAA and Global Financial Literacy Excellence Center shows that.
The study found that the median retirement age in the U.S. is 20 years.
Financial advisors suggest that it’s important to have an idea of how long your retirement will last before you start saving. If millennials are expecting their golden years will last 30 years or more, they’ll need to have enough savings to get them through. If they do not, they run the risk of outliving their savings.
Around three-quarters (75%) of respondents to the March Nationwide survey expressed concern about running out of funds before running out time.
Women See a Longer Retirement
Women tend to expect a longer retirement than men. 54% (of female workers surveyed) said they expect at least 20-years of retirement, compared to only 48% for men.
According to the study, respondents considered their personal health, family history and general knowledge about the average lifespan in the U.S. when answering. The report also found that most people do not know the average age of Americans. (Data from the National Center for Health Statistics indicates that the average life expectancy for Americans is about 78.
