According to a Northwestern Mutual study slightly more than half of Americans (56 percent) feel financially prepared to live past the age of 75. As life expectancy goes up, the financial neglectfulness will impact the economy in a wide–reaching manner.
Longevity risk, the oft-documented yet underappreciated threat of outliving your money is poised to acutely impact millions of retirees.
According to a recent study by the Society of Actuaries, couples who reach the age of 65 have a 50 percent chance of living to age 92. Yet, for whatever reason, not enough planning is taking place to make sure that an adequate amount of money will be there to fund these longer lives.
Northwestern Mutual has devised the “9-Hole Retirement Challenge” in order to engage Americans and get them thinking about their potentially extended lives.
The 9-Hole Challenge uses a series of golf-themed questions to access players’ knowledge of retirement risks and illustrates how certain financial decisions can affect their retirement income goals.
The nine topics included are: Longevity, health care costs, long-term care needs, market volatility, budgeting, inflation, taxes, social security and leaving a legacy.
Once the nine holes are concluded, participants are given a option to invite family and friends to play or, more importantly, to share their results with their financial representative.