Most Americans are financially unprepared for the possibility of living to 100, even as the number of centenarians is projected to quadruple by 2054, according to new research released Thursday.
The study from Nationwide Retirement Institute and The American College of Financial Services found that extending retirement by just five years—from 30 to 35 years—increases the risk of depleting savings by 41% based on historical market returns. When factoring in today’s lower projected returns, that risk skyrockets to more than 300%.
Despite this looming challenge, only 48% of Americans factor lifespan into their savings decisions, and merely 26% correctly estimate the average longevity of a 65-year-old man.
“Too many people underestimate how long they’ll live—and that blind spot can seriously undermine their financial security,” said Michael Finke, professor of wealth management and director of the Granum Center for Financial Security at The American College of Financial Services.
The research comes as inflation forces many to reconsider retirement timing, with 40% of non-retired Americans now planning to delay retirement due to rising costs.
Longevity concerns affect retirement planning
The consumer survey portion of the research revealed that only 29% of respondents actually want to live to 100, with most citing concerns about declining health and financial insecurity. Approximately three in four respondents fear outliving their savings.
The findings highlight the need for employers to emphasize longevity planning in retirement benefits programs and financial wellness initiatives. When respondents considered the possibility of a longer life, many indicated they would take proactive steps:
- 67% would increase their attention to finances and boost savings
- 58% would adopt healthier lifestyles
- 63% would reduce their debt
- 37% would delay retirement
Researchers also found that optimistic individuals are 75% more likely to save at least 10% of their income, suggesting that workplace positivity programs could indirectly support better retirement outcomes.
Solutions exist but remain underutilized
While most Americans (70%) believe society isn’t prepared for longer lifespans, the research indicates that existing financial products could help address these concerns but remain underutilized.
Nearly one-third of consumers identified long-term care insurance as potentially helpful for centenarian planning, yet only 10% report owning such policies. Similarly, 31% said lifetime income guarantees would increase their financial confidence, but knowledge and adoption of annuities remain low.
“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,” said Kristi Martin Rodriguez, leader of financial services marketing and the Nationwide Retirement Institute.
The research points to promising developments in workplace retirement plans, where protected retirement solutions that offer guaranteed income options are gaining attention but require broader adoption.
For employers, the findings suggest an opportunity to enhance retirement planning education, particularly for women, who generally live longer, score higher in longevity literacy, but report lower retirement confidence.
The study was based on a national survey of 1,000 U.S. consumers and 200 workers ages 55-65 conducted in February 2025, along with data from 3,765 Americans aged 50-75 interviewed in August 2023.
