The longevity action gap: why awareness alone won't improve retirement outcomes
For decades, our industry has defined retirement readiness primarily in financial terms. Save more. Invest wisely. Generate income that lasts. Those fundamentals still matter. But as people live longer, they’re not enough. In our latest research with the MIT AgeLab, more than half of Americans said answering questions about longevity preparedness made them think about issues they hadn't considered before.¹ That’s a signal that many people aren’t ready for the realities of longevity. Saving for retirement is only part of the equation. The real challenge is helping participants build the knowledge, habits, and confidence to thrive as they age. Supporting them requires employers, retirement providers, and financial professionals to work together to connect the dots across the many factors that shape long-term well-being.
Key takeaways
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Awareness was the first step—action is the next
To better understand how prepared Americans are for a longer life, we worked with the MIT AgeLab to develop the Longevity Preparedness Index (LPI). The LPI measures preparedness across eight areas that shape well-being as we age, from finances and health to caregiving, housing, social connection, and life transitions.
Now in its second year, the LPI research points to a consistent pattern: awareness is there, but action is lagging. Across multiple dimensions of preparedness, intentions often outpace action, leaving gaps that can affect long-term well-being and retirement outcomes.
For the retirement industry, that distinction matters. Raising awareness is an important first step, but improving outcomes requires helping participants translate that awareness into concrete decisions and behaviors throughout their lives.
Closing the awareness-action gap
The gap between awareness and action shows up across several dimensions of longevity preparedness and may be one of the biggest barriers to improving retirement outcomes.
People know what matters, they're just not preparing for it
Knowledge alone doesn't mean you’ll be ready. Americans recognize that health, care, housing, and social connections become increasingly important as they age, yet preparedness scores in those areas are the lowest.
You can't save your way out of every retirement risk
One of the most important findings is that financial resources alone don't guarantee preparedness. More money doesn't automatically mean people are ready for the conversations, decisions, and transitions that come with longer lives.
Care remains retirement’s biggest blind spot
Care represents a concerning gap—both planning to care for a loved one and planning for your own future care. While many Americans are aware that care will play an important role in their future well-being, few are taking meaningful steps to prepare. More than two-thirds don't know who would care for them if they needed it, and only 18% have discussed care options with family members.1
A longer life requires a better plan
The message is clear: retirement readiness requires more than a financial plan. Real preparedness demands action across the financial, health, care, housing, and social dimensions of aging.
Guidance makes a difference
One of the most encouraging findings in this year’s research is the potential impact financial professionals can have on longevity preparedness.1 People who work with a financial professional are better prepared—not just financially but across nearly every dimension of longevity. And when financial professionals actively discuss longevity planning, preparedness scores are even higher, further showing the value of broadening the conversation.
Supporting participants through every stage of life
If we want to improve retirement outcomes, we need to move beyond raising awareness and drive action. That requires guidance and engagement that encourages people to take the right steps at the right time. Because longevity preparation needs to start well before retirement begins, engagement should evolve to reflect the changing realities people face throughout their lives.
For younger employees, build a foundation
Longevity preparedness begins long before retirement is on anyone’s radar. For younger adults, the opportunity is to build healthy habits, start financial planning, and strengthen social relationships that can support long-term well-being. At this stage, messaging focuses on small, repeatable actions that compound over decades. This isn’t just about their retirement account; it's also about managing their competing priorities.
In midlife, expand the conversation
Midlife often brings new competing responsibilities—such as caring for loved ones while sending kids to college and managing health issues. This is an ideal time to expand conversations and resources to include caregiving, future care planning, housing considerations, changing family responsibilities, and major life transitions.
Near retirement, prepare for what’s next
As retirement approaches, participants need support navigating a wider range of decisions. The focus shifts to preparing for new transitions, including lifestyle decisions, care needs, housing choices, and legacy planning.
After retirement, keep adapting
Planning shouldn’t stop at retirement. As people live longer, work longer, and face evolving circumstances, preparedness becomes an ongoing process. Older adults need tools and resources that help them revisit decisions, adapt to changing realities, and make informed choices throughout retirement.
It’s time to redefine retirement readiness
Our research with the MIT AgeLab has made one thing clear: longevity requires a broader plan. Plan sponsors, financial professionals, and retirement providers all have a role to play in helping people turn awareness into action. These are relatively new conversations for our industry and participants, but they represent one of our greatest opportunities. By reaching beyond our traditional financial planning and partnering with other experts, we can help people prepare not just for retirement, but for living a longer, healthier, and better life.
As we dig deeper into our findings, we look forward to sharing more insight to help financial professionals and plan sponsors strengthen participant engagement and drive better outcomes.
How can we make a longer retirement better?
Longevity is about balancing health and wealth to help make those extra years better. The implications are shifting the way we think about retirement.
Important disclosures
Important disclosures
The Longevity Preparedness Index was developed in collaboration with MIT AgeLab and funded by John Hancock Life Insurance Company (U.S.A.). While financial support was provided for the research, it did not influence the findings, methodology, or conclusions.
The content of this document is for general information only and believed to be accurate and reliable as of the posting date but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice (unless otherwise indicated). Consult your own independent advisor as to any investment, tax, or legal statements made.
Manulife John Hancock is not affiliated with the Massachusetts Institute of Technology (MIT) AgeLab, and neither is responsible for the liabilities of the other.
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