New study shows how understanding longevity can boost retirement savings
The study tested ways to help people understand life expectancy and longevity risk, which can affect how much they save for retirement. By giving people information about life expectancy or longevity, researchers found that it changed how people thought about their chances of living longer and influenced their financial decisions. Longevity information made people more interested in saving and buying insurance for living longer, while life expectancy information mainly affected annuity choices. This suggests that many people may not be aware of the risks of living longer.