The retirement landscape has dramatically transformed in the last generation, and no factor has been more influential than longevity. Longer lifespans are transforming our expectations of retirement, while spurring innovative savings strategies to meet changing needs.
We’re witnessing not only more years in retirement, but a fundamental shift in how we approach financial security for our later years. By 2050, the proportion of the world’s population over age 60 is projected to nearly double—from 12% to 22%.
While society has made significant strides in the efficacy and accessibility of retirement planning tools, recent data from the 2025 Principal Global Financial Inclusion (Index) shows that financial decision makers in U.S. households are worried. According to a survey of U.S. consumers included in this research, more than half of Americans worry about outliving their retirement savings. These concerns are most acute among those approaching or already in retirement. About 70% of Gen Xers (ages 44-59) and half of baby boomers (ages 60-78) doubt they’ve saved enough for retirement.
The U.S. isn‘t alone in bracing for this demographic tidal wave of longevity. The trend has already accelerated in Asia, where some countries have been experimenting with solutions. For instance, China, Malaysia, and Vietnam have enhanced financial literacy and education initiatives
The Index insights echo conversations I’ve had with U.S. employers and their retirement plan participants. All this suggests we must keep building on progress and innovate even more solutions for retirement planning in the era of greater longevity.
Increased longevity extends far beyond personal finance to influence fundamental shifts in workforce demographics, housing preferences, and healthcare needs that will reshape our economy and society.
Solutions for this new era require a multi-faceted approach:
- Financial education and accessibility: Success in retirement planning increasingly depends on financial literacy and access to planning tools. Employers can lead this charge by providing comprehensive financial wellness programs addressing different life stages and needs. According to the Index, East and Southeast Asian economies have demonstrated significant financial literacy improvements through targeted education initiatives, charting a blueprint for others.
of U.S. consumers say they have access to tools for retirement planning—up 1.7% from 2024.
- Employer retirement programs: While employers and plan sponsors have made significant progress in addressing retirement challenges, global economic uncertainties and demographic shifts require ongoing evolution of retirement solutions. To keep retirement savers on track and strengthen long-term financial security, organizations should prioritize these strategies:
- Comprehensive financial wellness programs
- Flexible retirement solutions accommodating diverse needs
- Ongoing retirement planning education and guidance
- Innovative benefits to address longevity risks
- Regularly assessing and adjusting retirement offerings
35 out of 42 markets saw their employer support scores for financial inclusion decrease in the last 12 months.
- Personalized planning solutions: Rather than traditional one-size-fits-all solutions, retirement planning needs to become more adaptable. This includes considering varying life expectancies, health conditions, and individual circumstances when designing financial strategies. Generally, markets with advanced open banking frameworks show better scores in retirement planning flexibility. Across the board, digital tools and the integration of financial education within retirement planning platforms are improving access to retirement planning products.
- Enhanced institutional leadership: Financial institutions and governments also play an essential role in managing intertwined retirement and longevity risks, which are too complex for individuals to handle alone. Each sector brings unique capabilities: financial institutions provide investment knowledge and risk management tools; employers deliver workplace retirement plans and educational resources; and the government establishes regulatory frameworks and social safety nets.
of U.S. consumers feel the financial system acts in a way that makes them feel financial supported.
of U.S. consumers feel the government acts in a way that makes them feel financially supported.
Success in this new longevity era requires meaningful collaboration across employers, financial institutions, government, and individuals. While we face challenges—from greater caregiving needs to healthcare access concerns—we can meet them with more robust retirement solutions and potential safety nets. The key is a balance of practical planning with bold innovation. Through strategic collaboration and an unwavering focus on long-term solutions, we can help transform the challenge of longevity into an opportunity, ensuring that longer lives translate into better, more financially secure futures.
Explore more Global Financial Inclusion Index insights.
