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Longevity and Financial Wellness Challenges

May 08, 2019

Key Takeaways

  • Homeownership trends show fewer people own homes and are buying later than Boomers did.
  • While women are making strides financially, a financial literacy gender gap still exists.
  • Millennials and Gen Xers are already behind in saving for retirement versus previous generations.

 

Americans today are living significantly longer than previous generations, but life expectancy alone reveals little about how well they are enjoying that increased longevity. Now, a new report from the Stanford Center on Longevity (SCL) exploring the financial consequences of expanding longevity reveals that three trends – generational shifts in homeownership, gender inequalities in decision-making, and changes in retirement preparedness – are impacting the financial outlook for many Americans.

The study, “Seeing Our Way to Financial Security in the Age of Increased Longevity,” focused on factors that influence financial security at different stages in life. It’s co-sponsored by Prudential, which is committed to helping Americans solve the financial challenges they face in a changing world. Prudential’s report underscores the importance of workplace financial wellness programs.

Among the findings:

Millennials born in the early 1980s are less likely to own a home by age 30 than those born around 1960, a trend which may further erode financial wellness among millennials and the Gen Zers following them.

Women score lower than men, on average, when tested on financial literacy and their confidence in making high-impact financial decisions. Women have made gains, but still face greater challenges in maintaining financial security later in life.

Americans are not saving enough to maintain their standard of living after they stop working. This is especially worrisome for older workers who don’t have enough working years left to significantly boost their savings.

 

The three areas examined by the SCL—healthy living, social engagement, and financial security—are intertwined. An improvement in even one domain, such as financial security, can help Americans live longer, healthier lives. Employers, financial advisors, and policymakers can each play a role in helping American improve their financial wellness.

Read More

To learn more about Prudential’s perspective on the Stanford Center on Longevity Sightlines Project, Read “Preparing for Longevity: Overcoming Financial Wellness Challenges”.

 You may also be interested in other Financial Wellness topics.

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