The firm’s “2013 Planning & Progress Study” found that 44% said they are prepared to live to the age of 85, and 35% said they are prepared to live to the age of 95. Northwestern Mutual pointed out data that shows there is a 50% chance that a 65-year-old man today will live beyond age 87 and that a 65-year-old woman will live beyond age 90. Among married couples, there’s a 50% chance that one of them will live beyond age 94.
On average, preretirees say they will retire at age 68, even though the mean age of retirement among those already retired is 59. However, a closer look at the data reveals a significant number plan to work later. Six percent plan to retire before the age of 60; 52% expect to retire in their 60s; 32% in their 70s; and 10% in their 80s.
Half (51%) of Americans say they are less financially secure than they thought they would be at this point in their lives. Overall, just over four in ten (43%) Americans currently feel financially secure, while one in three (32%) do not feel financially secure, and the remaining one-quarter falls in the middle, not feeling strongly secure or insecure. In the study, “financial security” is defined as “a feeling of confidence that you will achieve the financial goals you have for yourself or your family through the actions you are currently taking.”
Within the study, several subgroups emerge as being among the least financially secure in America:
- Over half (62%) of single Americans say they are less secure than they thought they would be by now, compared to 43% of married people who say the same;
- Those with children younger than 18 are less financially secure now (56%) compared to where they thought they would be, whereas those with older children (49%) or no children (49%) feel slightly more secure; and
- Gen Y (59%) and Gen X (63%) are less secure now than they thought they would be, but the Mature Generation (36%) is more likely to say they are just where they thought they would be or are more secure than they thought they would be.