Nearly three-quarters (72 per cent) of U.S. employees with strong longevity literacy are saving for retirement on a regular basis, compared to 58 per cent with weak longevity literacy, according to a new survey by the Teachers Insurance and Annuity Association of America Institute and the Global Financial Literacy Excellence Center at the George Washington University School of Business.
The survey, which polled more than 3,500 U.S. employees and retirees, also found 69 per cent of those with strong longevity literacy were confident about having enough money to live comfortably throughout retirement, compared to 53 per cent of those with weak literacy.
Half (50 per cent) of those with strong literacy had determined how much they need to save for retirement, compared to 32 per cent of those with weak longevity literacy.
Looking specifically at retirees, the survey found 77 per cent of those with strong literacy said their current lifestyle meets or exceeds their pre-retirement expectations, compared to 62 per cent of those with weak literacy. The majority (82 per cent) said they’re confident they have enough money to live comfortably throughout retirement, compared to 69 per cent of those with weak literacy.
While a third (35 per cent) of respondents correctly identified the average lifespan from age 65, men were 10 percentage points more likely to underestimate the average life span at retirement age than women and more often demonstrated weak longevity literacy (32 per cent compared to 29 per cent of women).
“Longevity literacy is particularly important since retirement income security inherently involves planning, saving and preparing for a period that is uncertain in length,” said Surya Kolluri, head of the the TIAA Institute, in a press release. “Our research clearly demonstrates a lack of longevity literacy among the vast majority of U.S. adults. Improving this can promote better retirement security and mitigate longevity risk.”