Most Americans underprepared for longer lives, new study reveals

Adults are living longer, but there’s a caveat: Their retirement funds aren’t keeping up with their longer lives, according to a recent report.

John Hancock’s Longevity Readiness Index, developed in collaboration with the MIT AgeLab, revealed that US adults are largely unprepared to live well as they age. The index measures how well Americans thrive later in life across eight key areas: socialization, daily activities, care, home, community, life transitions, health, and finance.

Based on a survey of more than 1,300 adults, respondents scored an average of 60 out of 100 overall, suggesting that most adults are not adequately prepared for a longer life. They fall short in vital areas such as care, housing, finance and health. Some groups, particularly women and caregivers, had stronger preparedness across several of these dimensions.

The population aged at least 65 or over is expected to rise from 58 million to 82 million by 2050. However, the index shows that nearly four in 10 people will face financial instability as they age.

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The biggest blind spot identified in the LPI study is that few American adults know who will care for them as they age or how they will afford that care, and many have not had conversations with family or loved ones about it.

The study found that participants scored 42 on readiness to care, the lowest score of the eight domains analysed.

John Hancock CEO Brooks Tingle said the inaugural LPI results show that “while some people are preparing for longer lives, there is more our industry can and must do to help customers.”

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America’s aging population has presented challenges in saving for retirement. (Istock)

Dr. Joe Coughlin, founder and director of the MIT AgeLab, said the LPI findings “confirm that taking a few small but intentional steps — like planning a new hobby, starting a fitness routine or having a conversation about care — can lead to a better future and have a big impact on how we spend our later years.”

John Hancock and the MIT Lifespan Laboratory will update the LPI annually over the next four years to monitor changes in the indicators tracked by the study, and its results will be used to open opportunities for improving longevity.

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Social Security helps keep retirees out of poverty. (Istock)

Bankrate financial analyst Stephen Kates told FOX Business that “it’s no surprise that many Americans are not fully prepared for retirement and the challenges it brings.”

“Retirement has evolved into a life stage of its own, often lasting several decades for many individuals and couples,” Kates added. “Rather than serving as a quiet final chapter in life, it has become a vibrant second (or even third) chapter for millions who want to travel, start businesses, volunteer, or pursue long-awaited hobbies.”

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He went on to say that with increased longevity comes the increasing challenge of financing a retirement that may last 20 to 30 years, noting that “making intentional decisions about where and how to live can dramatically improve retirement preparedness.”