Study: Retirement Investors Inaccurately Predict Life Expectancy

Study: Retirement Investors Inaccurately Predict Life Expectancy

Jackson National Life Insurance Company, in partnership with the Center for Retirement Research at Boston College, published a study on how retirees and financial professionals perceive retirement risk and the possibility of outliving income.

Why it matters: Longevity risk is more significant than ever before.

  • Every day, an estimated 10,000 baby boomers reach the traditional retirement age of 65.
  • A key challenge facing retirees is how not to exhaust their assets when faced with the possibility they may live longer than expected.

By the numbers:

  • Only 12 percent correctly estimated their life expectancy, increasing the likelihood they will outlive their assets and potentially suffer a lifestyle decline.
  • More than 40 percent of the investors surveyed rely on the age of a parent at death to project their life expectancy. While useful, this data point is not an accurate predictor.

Published by

Darryl Hicks

Darryl Hicks is Vice President of Communications for the National Reverse Mortgage Lenders Association. In this capacity, Hicks writes for NRMLA's publications, manages the association's web sites and social media accounts, assists committees and the Board of Directors, and manages the Certified Reverse Mortgage Professional designation. Prior to joining NRMLA in 1999, Hicks spent three years in the Washington, D.C. bureau for National Mortgage News.