Building financial resilience in retirement

Retirement’s not a finish line—it’s becoming a whole new chapter of life that can last for decades. While the average life expectancy in the United States is 79, we’re seeing emerging trends that are changing how we need to think about retirement planning. First, the number of people 100 and older is expected to quadruple over the next 30 years. Second, more than half of retirees stopped working sooner than planned, at an average age of 56.

These trends make a 40-year retirement a distinct possibility for today’s multigenerational workforce. And a retirement that spans four decades adds even more uncertainty to an already difficult equation—what will those years be like? Longevity is reshaping how people experience retirement, bringing both challenges and opportunities that go beyond money. 

Helping employees prepare for a longer retirement

The Longevity Preparedness Index revealed that many Americans are not prepared for a longer life, falling short in critical areas such as care, housing, and health. The average score across all domains was 60 out of 100. Our research on longevity and financial resilience helps identify gaps in employee preparedness and challenges they face that can complicate retirement planning. 

• Few workers have a plan—Only 33% of workers have a formal and comprehensive plan for retirement.
• Retirement often comes sooner than expected—These early exits weren’t primarily driven by preference. Nearly 70% of early retirees stopped working due to personal health issues or to care for a loved one.
• Financial stress is rising—And it’s affecting workplace performance. Over half of employees spend an average of 4.6 hours a month managing personal finances at work.
  • 44% consider their financial situation fair or poor
  • 50% of workers are behind on their retirement savings
  • 66% of retirees wish they’d saved more   
• Care conversations aren’t happening—While 97% agree that access to care affects quality of life as they age, 68% don’t know who would provide care if needed, and only 16% have discussed options with their family. 
• Aging in place is the preference, but few are prepared for it—Most people want to stay in their homes as they age, and 89% say accessibility is crucial. But 64% of homes require stairs to enter, which can make aging in place harder.

Retirement planning for longevity 

Helping your employees build financial resilience and prepare for a potential 40-year retirement requires a holistic approach to retirement planning—one that balances all the dimensions of aging well. 

Here are three ways you can help your employees get ready for longevity.

1 Build financial resilience

Your employees need a solid foundation of financial literacy before they can tackle long-term planning. You can empower them by sharing educational tools and resources.

• Offer emergency savings programs
• Provide education on budgeting and debt management
• Use tools and campaigns that break tasks into simple, doable steps
• Deliver personalized guidance and timely digital nudges

2 Personalize by life stage

A one-size-fits-all approach doesn’t work across a multigenerational workforce. Targeting your communications and campaigns resonates more deeply and encourages employees to take action sooner. Segmenting content, tools, and messages can help improve engagement and outcomes.

• Early career—Focus on basic money skills such as budgeting, building resilience, and forming healthy savings habits.
• Midlife—Introduce topics such as giving or needing care, planning for life transitions, and managing debt while saving for the future.
• Preretirement—Highlight strategies on retirement income planning, when to take Social Security, and how to make lifestyle choices. 

3 Expand planning beyond money

Longevity planning isn’t just about finances. It’s about helping employees prepare for a retirement that’s meaningful and sustainable. Encourage your employees to consider everything they need to do to age well.

• Daily activities—Help employees plan a routine that balances responsibilities and fulfilling pursuits.
• Social connections—Encourage employees to build strong social networks that support mental and physical health.
• Care—Promote conversations with family about preferences, roles, and costs.
• Home—Share checklists to help employees keep their homes safe and comfortable so they can stay independent. 
• Community—Highlight resources to research a neighborhood’s cost of living, accessibility, social opportunities, physical environment, and available services.
• Life transitions—Offer guidance and resources to prepare for big changes later in life, such as retirement, relocation, caregiving, and legacy planning. 

Planning strategies for a 40-year retirement

Helping your employees prepare for longevity takes more than promoting how to save for retirement. It requires encouraging financial resilience, offering personalized support by life stage, and broadening planning conversations to include all the dimensions of aging well. By weaving these elements into your program design, you can improve engagement today and help your workforce retire with greater confidence tomorrow.

FAQs

What are the biggest financial risks in a long retirement?

Some financial risks related to a long retirement include outliving savings, overspending, rising everyday costs, and paying unexpected expenses, such as healthcare or caregiving. Market fluctuations can also affect how long a person’s money lasts. Encouraging employees to plan—and review their plan over time—can help them stay confident and flexible as life changes.

How can employers help employees prepare for retirement?

Employers can make a big difference in helping employees prepare by encouraging automatic enrollment and annual increases, offering matching contributions, sharing educational tools and resources on basic financial topics, and targeting communications to each generation.

What happens when employees retire earlier than planned?

More than half of retirees stopped working at an average age of 56. Retiring earlier than planned often means less time to save, a longer retirement to fund, and potentially reduced Social Security or pension benefits. Offering planning tools and guidance can help employees understand the trade-offs and make more confident decisions if early retirement becomes a possibility.

How does longevity affect retirement planning?

Living longer and better takes more than being healthy and financially secure. It’s also about where you live, how you spend your time, your relationships, and whether your home and routines give you a sense of purpose and independence. Depending on their life stage, your employees may need to focus on different areas. You can share resources to help them create a holistic plan.

1 In June 2025, Manulife John Hancock Retirement commissioned our eleventh annual financial resilience and longevity survey with the respected research firm Edelman Public Relations Worldwide Canada (Edelman). An online survey of 2,534 Manulife John Hancock Retirement plan participants was conducted between 5/9/25 and 6/2/25 and 512 retired Americans, sourced through Angus Reid’s research panel, was conducted between 5/9/25 and 6/2/25. The objectives of the study were to learn more about individual stress levels, their causes and effects, strategies for relief, and to provide custom insights around how retirees are faring in retirement. Manulife John Hancock Retirement and Edelman are not affiliated, and neither is responsible for the liabilities of the other.