Americans are looking forward to longer lives, but they also fear the financial consequences, according to a report released Friday by the Longevity Project, an educational and research organization based in Washington, D.C.
According to a survey by the organization, many young people think their retirement security is going to require more involvement by family members supporting one another, something that is going to change family dynamics and expectations.
The organization surveyed 2,200 American adults as part of a report done with Morning Consult, a technology company, and the Stanford Center on Longevity.
“At the same time that we begin to look forward to the rewards of longer life, we need to understand that we must change the way we live,” said Laura Carstensen, a professor at Stanford University and the founding director of the Stanford Center on Longevity, in a press release. “We need to make major changes to the ways we fund longer lives, manage longer careers, and even how we organize and engage with our families."
Twenty-eight percent of Generation Z respondents, those born after the year 2000, said they see family support as being important to their retirement, while an almost equal percentage (27%) cited corporate retirement plans as important. Half of the respondents said building retirement savings to support multigenerational family members will be of value in the future.
The prospect of a longer retirement concerns a large number of the respondents. Half of them said they are not prepared to save for retirement, and many do not have confidence in the current system. Only 16% of Generation Z said Social Security will be an important part of their retirement. Compare that with 43% of baby boomers, those born after World War II until the early 1960s, who said Social Security would play an important role.
More than three-quarters of Americans want more age diversity in the workforce, but only 12% of respondents said their employers are taking steps to hire older workers. More than half of respondents said they view longer life as a plus for the economy, while 23% view it as a negative.
“Older workers are considered a major asset, with an overwhelming majority agreeing that older workers are good mentors (84%), help companies serve older customers (80%) and are more mature in their dealings with co-workers and display stronger organizational citizenship (77%). Most respondents also believe that work quality improves with age (66%),” the report said.
"Americans are looking forward to longer lives," said Ken Stern, chair of the Longevity Project, in a statement. "But many Americans do not think our current system adequately supports them, which is why so many people feel unprepared for retirement and why many Americans express support for significant policy changes, like requiring all employers to offer 401(k) plans. This is an important signal to policy makers and business leaders to rethink how we work, live, learn and finance longer lives."