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.