🌅 How Americans Value Health vs. Wealth

SOURCE

Edelman Financial Engines

WHAT TO KNOW

• When given a hypothetical choice between adding $1 million to their retirement savings or five healthy years to their life expectancy, Americans ages 30 to 70 are split: 51% would take the money, while 49% would take the years. However, when offered an additional 10 years, just under 20% change their mind, with 68% choosing a longer life and 32% still taking the additional retirement money.

WHY IT MATTERS

• Survey data from major financial services firms and asset managers show Americans today think they’ll need around $1.2 million to retire comfortably, though around half also think they’ll outlive their savings. In reality, experts say there is no universal “magic number” for retirement, since a person’s needs will vary based on factors like where they live, how they spend their time, and whether they come up with a plan in advance.

CONNECT THE DOTS

• A new analysis by economists at Boston College found the average retirement age in the U.S. has risen by about three years over the past three decades, reaching 62 years for women and 64 years for men in 2024. Several factors drove the increase: the rising “full retirement” age for Social Security benefits, greater tech innovation and educational attainment leading to less physically demanding jobs for workers, and generally improved health and life expectancy since the 1990s.