A new report showed Americans' longevity may be working against them when it comes to retirement planning, as many have not saved enough to cover their longer lifespan while others may have dropped vital coverage like life insurance because they thought they wouldn't need it.
The Institutional Retirement Income Council reported most people have a poor idea of how long they will live past their expected retirement age and therefore can't decide how much they'll need to save for their post-work life. In fact, some are reportedly putting off retirement in an attempt to stave off the period of time in which they'll have to rely on their own savings as income, said the report.
"People are living longer. And while most of us consider this a good thing, it also makes it much more difficult for workers to save enough money to generate sufficient income in retirement," said Fred Reish, an IRIC member and the report's author. "We believe that one likely outcome is that many workers will retire at later ages, which will have implications for employers and also policy makers."
Older Americans are advised to reconsider dropping life insurance policies later in life, since it's never clear when they or their family may need to rely on emergency funds post-retirement.