FOX Business’ Gerri Willis reports on the rise of older Americans hiring at Varney & Co
Seniors are living longer, but there’s a caveat: Their retirement savings aren’t keeping pace with their longevity, according to a recent report.
John HanLevity’s Ferednessness Index (LPI), developed with Mit Agelab, revealed that US adults are well prepared to live well as they age. The index measures how well Americans will improve across the lifespan in eight key domains: social interaction, daily activities, caregiving, home, community, life transitions, finances.
Based on a survey of more than 1,300 seniors, respondents scored 60 out of 100 – indicating that most seniors are not well prepared for long lives. They are short in critical areas such as care, housing, finance and health. Other groups, especially women and caregivers, were ready for a stronger resilience in this dimension.
The LPI study examined retirement planning across eight domains of longevity. (Stock)
The population at least 65 years of age or older is estimated to increase from 58 million to 82 million by 2050. However, the index shows that about 10% of people will experience financial misconduct as they grow older.
Retirement A surprising face
The biggest blind spot shown in the LPI study is that few older Americans know who will care for them as they age, and many don’t, and many don’t have conversations with family or loved ones about it.
The study found that respondents scored 42 for preparedness, which was the lowest of the eight domains analyzed.
John Hancock CEO Brooks Tingle said the current LPI results show that “while some people are preparing for longer lives, there is more our industry can do to help customers.”
Americans face various retirement costs in current states such as social security cuts
The aging of the American population has presented challenges to retirement savings. (Stock)
Dr. Joe Coughlang, founder and director of Mit Agelab, said the results of the LPI “underline how taking some small steps like better care, can lead to better care, can lead to better care and how it can lead to our care.”
John Hancock and the MIT Age Lab will update the LPI every year for the next four years to monitor changes in learning outcomes, and the findings will be used to open opportunities for long-term improvement.
Retirement account rates dip in 1st quarter, but savers keep contributing
Social Security helps maintain retirement due to poverty. (Stock)
Stenrate PealCract 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 come into its own phase of life, often lasting decades for people and couples. Instead of working as the last (or third) millionaires, or finally pursuing delayed hobbies,” it added at the end.
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He went on to say that with longer term growth comes the added challenge of financing a retirement that can last 20 to 30 years, noting that “
