Americans financially unprepared for old age: Poll

While most people want to live to a ripe old age, many are unsure about the financial demands…

While most people want to live to a ripe old age, many are unsure about the financial demands of living to too ripe an age.

A poll of 1,015 American adults conducted in February by Northwestern Mutual Life Insurance Co. found that just 36% felt financially prepared to afford retirement to 95, based on their current financial plan. A little more than half — 56%— said they could afford retirement to 75.

The feeling of unpreparedness appears to be especially pervasive among younger individuals: 29% of participants under 60 said they could afford to live in retirement until 95, compared with 52% of those 60 and up.

“With longevity comes an increased need to proactively manage your personal finances, which includes a solid risk management strategy,” said Greg Oberland, an executive vice president at Northwestern Mutual.

While those surveyed weren’t all that confident about their ability to meet the costs of living a long life, they were taking steps to get their finances in shape. Their top three steps to improve financial well-being were paying down debt, developing and sticking to a budget, and regularly saving a portion of their paycheck.