Understanding the language of longevity is a crucial step in securing your future. According to a report released by the TIAA Institute, there is a direct correlation between an individual’s understanding of life expectancy and their ability to prepare for retirement. This report, entitled “The Language of Longevity: How Understanding Prompts Action,” examines how this new “language of longevity” can help individuals plan for a secure future. Let’s take a look at what the study reveals.
Understanding Longevity Literacy
The report begins by examining the statistics associated with life expectancy. The study found that despite living longer than ever before, individuals lack the knowledge necessary to take advantage of this increased life span. Women have been found to be more knowledgeable about longevity than men; however, both genders demonstrated low levels overall regarding longevity literacy (i.e., understanding probabilistic concepts related to aging). The study also found that those who were more aware of their own longevity were more confident in taking action toward planning financially for retirement and other long-term needs.
Reframing Retirement Planning
The report argues that retirement planning must move beyond just financial literacy and wellness and focus on lifetime income planning, meaning creating strategies to ensure you have enough assets to last your lifespan. Several key strategies should be employed when building a secure retirement plan to do this effectively. These include thinking long-term and investing in growth assets such as stocks or mutual funds; utilizing professional financial advice & services; creating a sustainable yet flexible budget; maximizing tax benefits and other incentives; and regularly reviewing your plan and adjusting as needed.
Conclusion:
Individuals must understand the language of longevity if they wish to create a secure future for themselves through proper retirement planning. By focusing on lifetime income planning and implementing key strategies such as investing in growth assets, utilizing professional advice & services, creating a sustainable budget, maximizing tax benefits/incentives, and regularly reviewing your plan – you can ensure that you are setting yourself up for success now so you can enjoy your later years without worry!
If you want to secure your future and plan for retirement, a professional financial advisor may help. Take the first step towards retirement planning today by contacting a qualified retirement planner to discuss your goals and develop a personalized plan that will serve you throughout your life. With their expertise in longevity literacy, they can help you create a strategy that works for you and gives you the peace of mind to prepare for retirement.
Financial Literacy, Longevity Literacy, and Retirement Readiness | Institute (tiaa.org)
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