While the prospect of living longer excites most Americans, the necessity of needing more retirement savings is causing more and more concern for younger generations.
Americans are expected to live on average 30 years longer than a century ago — according to research from the Stanford Center on Longevity — and while 93% have a favorable view if living those extra years, 70% feel financially unprepared to live to 100 or more. According to the study — by insurance company Allianz Life — the financial concern is greater for the younger generations. Nearly eight out of ten — 79% — of Gen-Xers said they feel financially unprepared for living longer, while 74% of Millennials had the same concerns.
"Americans, in general, should feel financially unprepared for longer lifespans," said Kevin Gallegos, a vice president for FreedomFinancial Network. "This is because most people do not have enough saved, period. They don't have enough in just an emergency fund, let alone in retirement funds."
Gallegos said there are variety of reasons people feel unprepared, including the financial crunch many feel since they are helping their children get established or caring for aging parents. Also, many are just understanding the cost of health issues that come up later in life, and some — especially Millennials - are realizing that Social Security may not be there for them, he adds.While there is no perfect way to know exactly what one will need as he gets older, Gallegos said there are a handful of things one can do to at least try to prepare.