At a glance
- The Centers for Disease Control and Prevention puts average U.S. longevity at 79 years, so the phase the survey asks about sits beyond the average.
- Nancy DeRusso, Guardian's Head of Client Solutions, described the shortfall as a failure to account for longevity rather than a failure to save.
- The survey of more than 2,000 U.S. adults found 55% have not worked with a financial advisor, according to the release.
Only 34% of Americans have actively planned how they will receive income at 80 or older, according to Retirement Redefined, research Guardian Life released Oct. 13. The Centers for Disease Control and Prevention puts average U.S. longevity at 79 years, so the phase the survey asks about sits beyond the average.
The same Guardian study puts at 48% the share who say they are more adequately prepared for their needs from ages 60 to 69. Nancy DeRusso, Guardian's Head of Client Solutions, described the shortfall as a failure to account for longevity rather than a failure to save. Many people know how much they are trying to save, she said, but far fewer can say how they will turn those savings into income over the next 20 or 30 years.
The survey of more than 2,000 U.S. adults found 55% have not worked with a financial advisor, according to the release. DeRusso said guaranteed income products might help, but more active engagement with advisors would also be critical. A Cerulli figure Ascensus cited last month put 63% of active 401(k) participants without access to an advisor—a different measure on a narrower population, access rather than use.
Respondents split on which retirement phase costs the most: 25% named the first years of retirement, 17% ages 70 to 79 and 20% ages 80 and older. Guardian attributes the spread to the absence of a universal model for modern retirement, plus healthcare costs and caregiving responsibilities. 75% of respondents worry an unexpected event could seriously affect their savings. High-net-worth individuals and business owners in the sample expected peak spending at 80 and older.
Guardian's own figures are demand-side, and the guaranteed-income conclusion covers products the life insurer sells. It is Guardian's second survey this month to find a shortfall: Guardian's Oct. 1 well-being report recorded 41% of respondents doubting their savings will last, and a Schroders survey this year found 51% of retirees report no strategy for converting savings into income. This publication has argued that the decumulation default decides more income outcomes than the annuity shelf does.
Which retirement phase costs the most: respondents split three ways
Share naming each phase as the most expensive
Show as table
| Label | Value (%) |
|---|---|
| First years of retirement | 25% |
| Ages 70 to 79 | 17% |
| Ages 80 and older | 20% |
| Question | Share of respondents |
|---|---|
| Actively planned income at age 80 and older | 34% |
| More adequately prepared for needs from ages 60 to 69 | 48% |
| Have not worked with a financial advisor | 55% |
| Expect peak spending at 80 and older | 20% |
| Worry an unexpected event could seriously affect savings | 75% |
Reported by the Income & Annuities desk from 401(k) Specialist. Published . Corrections