How employee longevity is changing retirement plans
Americans are living longer than ever, and that reality is changing retirement planning. Here’s how longevity is affecting participants, and how you can adjust your offering to stand out from the competition.
What’s longevity?
It’s no secret that Americans are living longer lives. The number of centenarians—those over 100—is expected to quadruple over the next 30 years,1 and individuals who stop working today could enjoy 40 years of retirement. This is a huge cultural shift, as previous generations generally only had to plan for a few years post-career. Helping your employees plan for and navigate this new reality can help your organization stand out as you compete to attract and retain talent.
Are your employees ready for an extended retirement?
Unfortunately, many workers aren’t ready for their next chapter, regardless of the length. Half are behind schedule on saving for retirement.2 Part of the reason is competing financial priorities. Your employees are juggling basic expenses, loans, housing, and more costs. It’s easy for retirement savings to fall behind, especially when money is needed for immediate concerns. In fact, 54% of workers have less than $50,000 in their retirement account.2
How can the longevity factor affect your business?
Longevity is more than what happens to your employees when they retire. The stress of planning and saving for retirement, along with daily financial needs, can cause your staff to become distracted on the job, miss work, and reduce their efficiency. Over 30% of workers2 say they’d be more productive at work if they didn’t spend so much time worrying about their finances.
On average, they’re spending nearly five hours per month2 on money issues during work hours. So while financial stress is a personal issue, it’s not one that employers can ignore. Consider partnering with your recordkeeper and financial professional to promote educational resources and online tools. And be sure to give your employees multiple paths toward improving their financial well-being so they can choose the method that feels most comfortable. For some, this may be interactive sessions and webinars, while others may prefer solo reading and calculators.
Does Gen Z care about longevity and retirement support?
Gen Z-aged workers now outnumber baby boomers in the workplace.3 While the oldest in this generation are still in their 20s, don’t assume they’re not aware of the importance of planning for the future and the role employers can play. In fact, 66% of Gen Zers say saving for retirement is one of their top financial priorities—just below managing their expenses and saving for emergencies.2 Plus, 72% say they’re not willing to work for an employer who doesn’t offer a retirement plan.2
Because each generation is at a different stage in their financial journey, consider incorporating age-specific messages into your communications. Not only will these messages resonate more strongly with each group, they’ll also help demonstrate your commitment to providing personalized support tailored to their needs.
Your role in supporting better participant outcomes
More than 40% of workers rate their current financial situation as fair or even poor, and 56% already worry about running out of money in retirement.2 Sponsors can make a big impact in this area. Nearly half of workers say their employer influences their financial decisions.2
Increasing awareness of longevity risk, supporting financial education, and providing tools can help participants improve their financial health, both today and in retirement. Get support from your recordkeeper and financial professional to help with these tasks. Most likely, they have a broad range of resources that you can start using right away.
The final word on longevity
The retirement you help your employees plan for today is vastly different from those of past generations. Preparing for an extended retirement requires a different approach and greater support. Incorporating this shift into your education and communication programs can help your employees plan for a longer, better retirement while helping your organization rise above the competition.
For more insight to help your employees thrive in retirement, check out our longevity hub.
1 “U.S. centenarian population is projected to quadruple over the next 30 years,” Pew Research Center, 1/9/24. 2 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. 3 “Changes in the U.S. Labor Supply,” Trendlines, U.S. Department of Labor Employment and Training Administration, August 2024.
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
This content is for general information only and is 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. Please consult your own independent advisor as to any investment, tax, or legal statements made.
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