Planning for retirement requires “longevity literacy,” which is the ability to estimate how long you live after retirement and how much money you will need to cover that time. (Photo courtesy of Unsplash / Towfiqu barbhuiya)
By Bria Overs, Word In Black
Working for a lifetime is rarely any person’s dream. As people get closer to age 65, they start putting together their plans for living out the rest of their lives in a well-deserved retirement.&
However, too many Americans lack the “longevity literacy” to prepare for retirement properly.&
In a study of the TIAA-Global Financial Literacy Excellence Center’s Personal Finance Index (P-Fin Index), only 12 percent of adults had “strong longevity literacy.” These adults understood how long 65-year-olds live and the likelihood of living well past that age.
An estimate for 2021 from health policy research organization KFF showed the average life expectancy for Americans has declined since 2019 from 78.8 years to 76.1. Black people are down to 70.8 years from 74.8.
Still, people live longer than they ever have, often unexpectedly. And their retirement savings and preparedness must match that, if not surpass it.&
The National Council on Aging found that 20 percent of older households have...