Longevity is quickly becoming one of the largest unaddressed risks in retirement planning: The number of Americans living to 100 is expected to quadruple by 2054, yet most retirement plans aren't built for 90 or 100-year lifespans. Yet despite this surge in longevity, new research from Nationwide Retirement Institute and The American College of Financial Services reveals a troubling disconnect: While lifespans are rising well into the 90s and beyond, financial planning hasn’t kept pace. As a result, millions face a growing risk of outliving their savings.

The survey highlights the urgency of this issue:

Only 29% want to live to 100, citing financial and health concerns as the top reasons; roughly 3 in 4 worry they’ll run out of money before they run out of time
Extending retirement horizons by just five years increases the risk of running out of money by 41%, though factoring in lower near-term asset returns increases that risk by more than 300%
Despite the stakes, only 48% factor lifespan into their savings and investment decisions but 67% say they would pay more attention and save more if they knew they would live longer

These findings are part of Nationwide’s new Century Club campaign, which explores the financial implications of rising life expectancy. According to The College’s research, extending a retirement by just 5 years from 30 to 35 years increases the risk of depleting savings by a striking 41%, based on historical market returns. And that risk only intensifies as lifespans continue to lengthen, particularly among healthy, higher-income retirees.

Instant Insights /

Living to 100: As lifespans rise, retirement planning needs a major reset

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