A 65-year-old American woman can expect to live another 21.9 years, reaching age 87-yet only 33% of adults know this, according to a TIAA Institute survey.
Life expectancy rises with age. The average American lives to 78.4, but a man turning 65 today is expected to live to 84, and a woman to 87.
Most people underestimate their lifespan, leading to shorter retirement plans. Over half of those who underpredict life expectancy expect to retire for fewer than 20 years-a figure that's likely too low.
The average retirement age is 62. A man retiring then could live another 21 years; women often outlive men.
Financial planners recommend planning for a 30-year retirement, covering scenarios up to age 95. Those who understand longevity save more and feel more secure.
Millennials and Gen Xers are least likely to grasp longevity, with 36% and 37% underestimating life spans-compared to 26% of baby boomers and 21% of Silent Generation members.
"You are not your grandparents," said Surya Kolluri of the TIAA Institute. Advances in healthcare mean successive generations live longer.
Fear of outliving savings is greater than fear of death itself, says Allianz Life. Around 40% of households are at risk of failing to maintain their standard of living in retirement.
"The real risk is running out of savings," said Catherine Collinson of Transamerica Center.