As a growing number of Americans enter retirement, newly released data shows many are not financially prepared to live long lives.
Data from John Hancock and MIT AgeLab shows the number of Americans who will reach age 60 will double by 2050 and that people over age 85 will be the fastest-growing age group.
To analyze Americans’ preparedness for later years, MIT AgeLab and John Hancock created the Longevity Preparedness Index (LPI). On a scale of 0 to 100, Americans scored a 60.
The data indicates most adults are underprepared for longer lives, falling short in key areas such as care, housing, finance and health.
The findings go beyond dollars and cents.
"Our inaugural Longevity Preparedness Index introduces a new way of thinking about longevity – it's frankly no longer just about how much you've saved for retirement or even about how healthy you are; it's also about where you'll live, how you'll get where you need to go, how you'll fill your days, and who you will share your time with," said Brooks Tingle, CEO of John Hancock. "And the results of the Index tell us that while some people are preparing for longer lives, there is much more our industry can and should be doing to help customers."
The study found that many adults have not identified who will care for them as they age or how they will afford that care. It also showed that many homes are not ready to accommodate aging adults.
One stronger area for Americans is social connections.
"The LPI is more than a measurement; it is a research-based framework that seeks to redefine how we think about preparing for later life," said Dr. Joe Coughlin, founder and director of the MIT AgeLab. "While health and wealth security are key, between those two vital bookends are the routines and assumptions that make up daily life. The LPI seeks to spark public awareness and action to prepare people for living what is likely to be a full one-third of their adult lives."
Coughlin said simple steps, such as starting a new hobby or fitness routine, could help people as they age.
