Longevity and retirement planning face challenges as life expectancy rises

The Longevity Preparedness Index (LPI), a joint release from MIT AgeLab and John Hancock Financial, indicates that U.S. adults scored 60 out of 100 in readiness for increased longevity, a figure that remained unchanged from the previous year. Experts noted that care remains the weakest area of preparedness.

As life expectancy potentially increases, the traditional retirement age of 65—established in the United States in 1935—is being questioned by experts who suggest it may no longer align with modern lifespans. While the ‘Great Wealth Transfer’ from Baby Boomers to younger generations is estimated to be between $36 trillion and $124 trillion, the timing of this transfer is complicated by shifting longevity expectations.

Research suggests the possibility of humans living to 130 or even 150 years old. A University of Washington study estimated a 13% chance that at least one person in 13 analyzed countries would reach 130 by the year 2100.