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.