Planning for the unknown

Longevity expectations can have big impact on retirement readiness

By Michael Pramik, Ohio Public Employees Retirement System

Sept. 17, 2026 – When most people think about retirement planning, they focus on one question: “How much money will I need?”

A growing body of research suggests there is another question that may be just as important: “How long will my retirement last?”

A recent study by the TIAA Institute and Stanford University’s Global Financial Literacy Excellence Center found that many Americans underestimate how long people typically live after reaching age 65. Researchers call this “longevity literacy,” or understanding life expectancy and how it affects financial planning. The study found that people who expect shorter retirements generally save less, plan less and are less likely to think about how they will generate income throughout retirement.

Why does this matter? Because retirement today can last 20, 25, or even 30 years for many people. A retirement that spans several decades presents challenges that previous generations did not face to the same extent, including inflation, rising health care costs and market volatility. Planning for a long retirement may require a different mindset than simply reaching a target retirement age.

The research found a clear relationship between retirement expectations and retirement behavior. Workers who expected to spend more years in retirement were significantly more likely to save regularly and seek professional guidance. They also were more likely to think about how their savings would eventually be converted into retirement income. Meanwhile, individuals who expected shorter retirements were less likely to engage in those activities.

For OPERS members, the lesson is straightforward: Retirement planning should account not only for when you retire, but also for how long your retirement may last. Members participating in the Traditional Pension Plan have the advantage of a lifetime monthly benefit, while participants in the Member-Directed and Combined plans should regularly review their savings levels, investment allocations and long-term goals. Regardless of plan choice, understanding longevity can help members make more informed financial decisions throughout their careers.

Retirees may benefit from the same perspective. A retirement that lasts several decades requires careful attention to spending, health care planning and preserving financial resources for the future. While no one can predict exactly how long they will live, considering a longer retirement horizon can help reduce the risk of outliving one’s financial resources.

As supported by the TIAA Institute study, one of the most powerful retirement planning approaches is to understand that retirement may last much longer than you think.