A] Prelude
For more information on pension systems, risk and coverage, feel free to visit our dedicated webpages:
https://expatpensionholland.nl/usa-expat-pensions
https://expatpensionholland.nl/global-pillars-systems
https://expatpensionholland.nl/global-investments-risks-0
https://expatpensionholland.nl/global-social-security-coverage
For even more information feel free to visit the following external sites:
https://fortune.com/2025/07/27/rga-ceo-warns-outliving-savings/
https://www.realtor.com/advice/finance/retirees-outlive-savings-by-state-homeowner-risks/
B] The Issue
Changes in financial planning that will account for increasing longevity haven’t necessarily kept pace with expectations that the number of Americans living to 100 and beyond will quadruple over the next 30 years, warns a new study.
C] The Longevity Details
In fact, the research from the Nationwide Retirement Institute and the American College of Financial Services finds that extending a retirement by just five years from 30 to 35 years increases the risk of depleting savings by 41%, based on historical market returns.
Conducted as part of the Nationwide Retirement Institute’s Century Club campaign, the research also finds that that risk only intensifies as lifespans continue to lengthen, particularly among healthy, higher-income retirees.
In that same vein, a companion consumer survey from the Nationwide Retirement Institute shows most Americans are underestimating both their chances of living to 100 and the financial demands that kind of longevity brings. In fact, only 29% of respondents said they want to live that long, citing concerns about declining health and deep financial anxieties. What’s more, roughly three in four respondents fear they’ll run out of money before they run out of time.
D] The Economic Details
And the current economic environment is raising the stakes even higher. According to the joint research, 4 in 10 non-retired Americans (40%) now say they plan to delay retirement due to inflation. When factoring in lower projected 10-year portfolio returns, extending retirement by just five years increases the risk of running out of money by more than 300% according to the College’s analysis.
“Too many people underestimate how long they’ll live — and that blind spot can seriously undermine their financial security,” noted Michael Finke, professor of wealth management and co-author of the study. “We consistently see that those who plan for longevity feel more confident about retirement.”
E] Actions
According to the researchers, one key step to preparing for a longer life starts with considering how long you might live. However, less than half (48%) of respondents incorporate lifespan into their savings and investment decisions, according to the Nationwide Retirement Institute’s survey, and only 26% of respondents correctly estimated the longevity of a 65-year-old man, according to the joint research.
While the challenges of planning for longer lifespans are apparent, Nationwide’s consumer survey also revealed that if Americans knew they would live longer, many would take steps to improve their physical and financial well-being:
- 58% said they would adopt a healthier lifestyle
- 67% would pay closer attention to their finances and increase their savings
- 37% said they would delay retirement
- 63% said they would take on less debt
F] Mindset Matters
Mindset also matters, according to the researchers. In this case, the College’s research found that optimists are 75% more likely to save at least 10% of their income — underscoring how a positive perspective can drive more financially secure retirements. The report also refers to financial literacy as “a quiet driver of retirement readiness.”
“When people think seriously about living longer, it becomes clear that physical, mental, and financial health go hand in hand,” observed Kristi Martin Rodriguez, leader of financial services marketing at the Nationwide Retirement Institute. “Just as we encourage healthy habits to support longer lives, we need to help build strong financial habits that ensure people can thrive well into their later years.”
G] Finally
The researchers go on to note that effective solutions already exist, but these tools, such as long-term care insurance and guaranteed lifetime income products, remain widely misunderstood or overlooked, highlighting a significant gap in consumer education.
“As the risk of longevity combined with today’s volatile market environment create what might seem like a perfect storm for retirement savers, the good news is that solutions exist to provide a measure of certainty in an uncertain environment,” added Rodriguez.
“Financial professionals and others serving America’s retirement savers can play a critical role in bridging this gap, tailoring strategies to individual needs – especially for groups like women, who tend to live longer, score slightly higher in longevity literacy, yet report lower retirement confidence overall.”