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Americans’ retirement plans may fall short in their later years

More retirees just focus on needs during the early years

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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.

Updated:

key insights:

  • Just 34% of Americans have planned for income at age 80 and beyond, Guardian research finds.
  • Three-quarters worry unexpected events could disrupt their retirement savings.
  • Nearly two-thirds say guaranteed income would increase their retirement confidence.

Many Americans are preparing for retirement without mapping out how their income will last through their oldest years, according to new research from Guardian Life Insurance.

The survey found 48% had planned at least somewhat for income during ages 60–69. That fell to 41% for ages 70–79 and 34% for ages 80 and older. Among adults ages 45–70, just 28% had planned for income beyond 80.

At the same time, the findings show that most adults don’t have a clear consensus on when they will need money in retirement, likely due to the highly personalized nature of retirement, as well as the impact of unpredictable factors like rising healthcare costs and caregiving responsibilities. 

When asked when they think they’ll need the most money, 25% pointed to the first years of retirement, 17% to ages 70-79, and 20% to age 80 and beyond. High-net-worth individuals with over $1 million in investable assets (38%) and business owners (34%) are more likely to anticipate peak spending needs during their later years.

Retirement uncertainty is universally felt

In spite of the lack of planning, Guardian found that 75% of adults are concerned about how unexpected events could impact their savings. This concern spans demographics and financial profiles, with high-net-worth individuals (81%) and business owners (78%) reporting similar concerns about their ability to maintain reliable income in retirement.

Guardian’s Nancy DeRusso said retirement preparation often emphasizes accumulating savings without adequately addressing how to turn that money into decades of income.

“Many individuals know how much they’re trying to save for retirement,” DeRusso said. “Far fewer have a clear answer for how they’ll turn those savings into income over the next 20 or 30 years. For many, our research suggests that retirement planning efforts fall short because they aren’t accounting for longevity.”

The survey showed more than half of adults (55%) have never worked with a financial advisor, including 37% of business owners. Yet, most understand the value of working with a financial advisor, regardless of life stages.

Morning Consult conducted the research June 1–13, surveying 2,082 U.S. adults, plus separate samples of wealthy individuals and business owners. Guardian, which sells retirement products including annuities, sponsored the study.