‘Longevity literacy’ may be key to better retirement readiness (TIAA)

#1

This seems like it may be the next big issue facing many people here; after you’ve figured out how to increase your healthy lifespan to … 90, 110, 120 …, how to pay for a high quality of life for all those years.

From TIAA:

Survey shows only one-third of U.S. adults know the likelihood of 65-year-olds living to at least age 90

NEW YORK, Aug 21, 2023 – A staggering number of Americans display a lack of understanding regarding how long people tend to live in retirement, and this lack of longevity literacy hinders retirement planning and saving.

The findings come from a just released report by the TIAA Institute and the Global Financial Literacy Excellence Center (GFLEC) at the George Washington University School of Business (GWSB) using data from the 2023 Personal Finance (P-Fin) Index survey. The research expands upon a January reportOpens pdf that first introduced the concept of longevity literacy.

Both reports found that less than 40% of adults correctly identified average lifespan at retirement age. In the initial report based on the 2022 P-Fin Index data, 37% correctly identified lifespan from age 60. In the new report, 35% were correct about lifespan from age 65.

Furthermore, the new survey enables a more complete assessment of longevity literacy. It built upon the initial research by also asking respondents to identify the likelihood among 65-year-olds of living to an advanced age (90) and the likelihood of dying relatively early (by age 70). The findings are sobering—only 12% demonstrated strong longevity literacy by correctly answering the questions.

At the other end of the spectrum, 31% showed weak longevity literacy by responding either “don’t know” or incorrectly in the wrong direction of the retirement planning horizon (i.e., chose the response that underestimates lifespan) to each question.

The most striking demographic variation in longevity literacy involves men and women. Again, in both reports men are 10 percentage points more likely to underestimate average life span at retirement age. In addition, in the new report, men more often demonstrate weak longevity literacy, 32% compared with 29% of women.

“Longevity literacy is particularly important since retirement income security inherently involves planning, saving and preparing for a period that is uncertain in length,” said Surya Kolluri, head of the TIAA Institute. “Our research clearly demonstrates a lack of longevity literacy among the vast majority of U.S. adults. Improving this can promote better retirement security and mitigate longevity risk.”

The new research confirmed the link – for both retirees and those still working – between strong longevity literacy and overall retirement readiness. Considering the responses from people still working who have strong longevity literacy, the report found that:

  • 50% have determined how much they need to save for retirement, compared to 32% of those with weak longevity literacy.
  • 72% are saving for retirement on a regular basis, compared to 58% of those with weak longevity literacy.
  • 69% are confident about having enough money to live comfortably throughout retirement, compared to 53% of those with weak literacy.

Findings are similar to those with strong longevity literacy who have already retired:

  • 77% say their current lifestyle meets or exceeds their pre-retirement expectations, compared to 62% of those with weak literacy.
  • 82% say they are confident they have enough money to live comfortably throughout their retirement, compared to 69% of those with weak literacy.

“Unfortunately, poor longevity literacy cannot be improved by simply providing people with information. Terminology is an obstacle,” said Annamaria Lusardi, University Professor at The George Washington University and GFLEC’s Academic Director. “For example, only one-third of adults understand the practical implications of the term “life expectancy.” On the other hand, one-quarter think that “life expectancy” is the age by which the vast majority of a group of people will die. So simply providing information is not enough, we have to do more to teach about these important concepts.”

Related Reading:

The new full report can be found on the Institute website.

Overview here:

2023-tiaa-institute-gflec-pfin-longevity-infographic.pdf (1.1 MB)

Longer Document:

tiaa-institute-gflec-pfin-longevity-ti-yakoboski-august-2023.pdf (1.8 MB)

About the TIAA Institute

The TIAA Institute, the research arm of TIAA, helps advance the ways individuals and institutions plan for financial security and organizational effectiveness. The institute conducts in-depth research, provides access to a network of thought leaders, and enables those it serves to anticipate trends, plan future strategies and maximize opportunities for success. For more information about the TIAA Institute, visit www.tiaainstitute.org.

Other discussions on this topic:

#2

These were people who potentially were already on rapamycin in mid-2010 based on this article of 2017 ( perhaps we should collectively follow up to see what are they up to today) https://www.removepaywall.com/article/current

  • Norman Lear: He is a 94-year-old TV producer who hosted a party for scientists and investors interested in longevity research.

  • Liz Blackburn: She is a Nobel Prize-winning biologist who studies telomeres, which are DNA buffers that protect the ends of chromosomes. She is not optimistic about the possibility of finding a single drug or approach to reversing aging.

  • Joon Yun: He is a doctor who runs a health-care hedge fund. He is funding a research challenge to find ways to extend human life span.

  • Nicole Shanahan: She is the founder of a patent-management business. She is overseeing a portfolio of longevity-related patents.

  • Sergey Brin: He is the co-founder of Google. He is interested in longevity research, but he is not convinced that it will be possible to make death optional.

  • Martine Rothblatt: She is the founder of a biotech firm called United Therapeutics. She is working on ways to grow new organs from people’s DNA. She believes that it is possible to make death optional through technology.

  • Andy Conrad: He is the C.E.O. of Verily, a life-sciences firm owned by Google’s parent company, Alphabet. He is more interested in extending healthspan (the number of years people live in good health) than in extending maximum life span.

  • Gordon Lithgow: He is a leading C. elegans researcher. He studies the genes that control life span in the nematode worm.

  • Aubrey de Grey: He is the chief science officer of Silicon Valley’s sens Research Foundation. He believes that it is possible to repair the seven types of physical damage that cause aging.
    Here are some of the drugs or approaches that are being studied for longevity:

  • Telomerase inhibitors: These drugs can extend telomeres, which could help to slow down aging.

  • Metformin: This drug is commonly used to treat diabetes, but it has also been shown to extend life span in mice.

  • Rapamycin: This drug is an immune suppressant that has been shown to extend life span in mice and monkeys.

  • Senolytics: These drugs can kill senescent cells, which are cells that have stopped dividing and can contribute to aging.

  • Gene editing: This technology could be used to repair genes that are associated with aging.

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#3

For people here… Probably a much larger risk…

It’s possible that in planning for your assets to last a lifetime, you could be in danger of seriously underestimating how long that lifetime might be. In compiling their 2024 Personal Finance Index, researchers at the TIAA Institute and the Global Financial Literacy Excellence Center at George Washington University asked a question about the average life expectancy of a 65-year-old. Only one-third of those responding knew the correct answer: age 84 for men and age 87 for women. Almost 60% either said they didn’t know or underestimated life expectancy

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#4

To effectively plan for your retirement, experts say, you need to watch your savings rate and total nest egg.

But how much you really need to have set aside depends on another number — your life expectancy.

Yet that figure is also the most elusive — no one knows how long they will live.

“Nobody really knows, and that uncertainty is uncomfortable,” said Lisa Schilling, director of practice research at the Society of Actuaries Research Institute, the research arm of the Society of Actuaries.

The financial industry typically uses age 95 as a default assumption, according to research from HealthView Services, a provider of health-care cost projection software.

The Society of Actuaries and American Academy of Actuaries recently relaunched a free online longevity illustrator.

#5

I feel like money wouldn’t be a huge issue as long as you have a high savings rate, solid asset allocation and take advantage of compounding. After all, money doubles about every 10 years or so in stocks. Warren Buffett’s net worth went from 58 billion at age 83 to like 140 billion at age 94.

For there rest of us mortals, one good option is the Qualified Longevity Annuity Contract (QLAC). You buy it at a certain age (say 60 years old), decide when the funds would kick in (max 85 years old), effectively betting on your longevity against the insurance company. Then after you reach 85, you get a paycheck the rest of your life. The longer you defer, the higher the amount. It’s not a ton of money, say $40-60k per year depending, but it’s a good fallback option to prevent going totally broke. Best case, if they start paying out at 85 and you live to 130, that’s 45 years of payments! Granted, QLACs tend not to be tied to inflation, so it would lose value over the 45 years.

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#6

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#7

Here’s an idea for those of you thinking about retirement, preferably if you know some Italian for the social aspects, so you can sit in a plasticy white chair in the summer evening socializing over some alcohol-free wine, or eat at a nearby restaurant on occasions.

1 € Houses in Sicily, to almost live like Count if you pay more, with some renovations. Is this a good idea? An entire historic apartment complex for 8000 euros excluding renovations is epic starting at the 35 min mark.

Buying a 1 euro House in Italy - is it a scam?

Video Summary

The video explores the viral phenomenon of Italy’s €1 house initiative, which offers abandoned homes in dying villages for the symbolic price of €1 to encourage restoration and repopulation. The hosts embark on an investigative trip to Sicily, accompanied by a skeptical Finnish chef named Stefan, to determine if these offers are genuine or merely a marketing myth. Over two days, they visit remote towns, including Sambuca di Sicilia and Mussomeli, aiming to uncover the truth about the affordability, livability, and community impact of these properties.

1. Introduction to the €1 House Scheme ([00:00:02 - 00:04:24])

  • Italy’s rural villages, suffering from population decline and economic stagnation, launched the €1 house scheme around 2008.
  • In theory, homes abandoned due to depopulation and disasters like the 1968 earthquake are sold for €1, contingent on buyers renovating them within a few years.
  • The hosts recruit Stefan, a vocal skeptic who doubts the practicality and authenticity of the scheme, to provide an impartial perspective.
  • They emphasize the challenge of isolation and infrastructure in these remote areas, noting Italy has approximately 80 towns running these projects.

2. Exploring Sambuca di Sicilia: Reality vs. Expectation ([00:06:01 - 00:16:49])

  • Sambuca appears picturesque but largely deserted, with few locals and scarce social venues ([00:07:11]).
  • The decline started decades ago due to mechanization of agriculture and the 1968 earthquake, leaving many buildings abandoned ([00:07:43]).
  • The hosts experience an eerie atmosphere and note the town’s gradual revival with some renovations underway.
  • They meet locals and newcomers, including a man who bought homes for under €30,000, indicating prices are rarely just €1 ([00:11:30]).
  • Stefan’s skepticism grows as renovation costs scale to €175,000–€200,000 in many cases, far beyond the initial €1 purchase price ([00:13:36]).
  • Stefan suffers a health scare during the visit, temporarily reducing the group’s momentum ([00:14:06]–[00:17:20]).
  • Despite no confirmed purchases for €1, the scheme has drawn renewed activity and interest to the town, improving its social dynamics ([00:18:30]).

3. Social Life and Community in Sicilian Villages ([00:18:30 - 00:23:32])

  • The hosts observe a vibrant social culture—older men gathering daily in small clubs to socialize, a hallmark of Italian rural life.
  • Locals appear welcoming and appreciative of renewed life in the village, with new cafes and bars emerging ([00:22:00]).
  • Despite limited tourist infrastructure, the towns offer a strong sense of community and slower pace of life.
  • The skepticism softens as Stefan rates his enthusiasm rising to 7–8 out of 10, acknowledging the charm beyond mere real estate prices ([00:23:02]).

4. Investigating Mussomeli: Confirming the Reality of €1 Purchases ([00:26:10 - 00:38:51])

  • In Mussomeli, the hosts meet Summer, a local who has successfully purchased multiple homes combining them into a large residence, some originally priced at €1 ([00:30:03]).
  • Summer confirms that while the official sale price can be just €1, buyers pay additional fees such as €2,500 notary fees plus renovation costs.
  • Summer’s extensive renovations were affordable, totaling around €8,000, demonstrating potential if willing to invest effort ([00:37:50]).
  • Unlike Sambuca, Mussomeli shows more community activity and interest from foreign buyers, with roughly 25% of the population being newcomers ([00:38:51]).
  • The hosts note that houses “for €1” often require large-scale restoration, which is the real expense rather than the purchase price itself.

5. Challenges, Realities, and Conclusions ([00:39:23 - 00:41:03])

  • The trip reveals the dual nature of the €1 scheme: it is neither a scam nor an effortless path to cheap housing.
  • Properties are typically historic but structurally degraded, requiring substantial renovations to be livable.
  • Village revival is driven by a mix of locals who stayed, newcomers restoring homes, and a strong communal spirit.
  • The hosts conclude that while this project does bring life back to dying villages, it is a demanding process and may not be suitable for everyone.
  • The idea of opening “digital detox” retreats in such locations remains under consideration but requires further exploration for suitable spots with more nature and space.
  • Stefan’s skepticism remains cautious but has softened somewhat; overall enthusiasm declined initially but recovered slightly after meeting local success stories.

Key Takeaways

Aspect Insight
€1 House Purchase Reality The €1 sale price is symbolic; significant renovation and additional fees make the actual cost much higher.
Village Revitalization These schemes have successfully brought new life and community activity to previously declining villages.
Infrastructure & Isolation Remote location and limited amenities are challenging but part of the lifestyle tradeoff.
Community & Social Culture Strong social ties and traditions remain a vital anchor for these villages’ resilience.
Skepticism vs. Optimism Initial skepticism is warranted, but personal stories highlight potential for revival and investment.

Final Thoughts

This in-depth exploration goes beyond sensational headlines and reveals the complexities behind the €1 house projects. While not an instant path to affordable homeownership, these initiatives stimulate preservation, community, and rural resurgence. Interested buyers must be prepared for significant renovation efforts but can find beauty, history, and belonging in these revitalized Italian villages.