Research from Fidelity International (‘Fidelity’), in partnership with the National Innovation Centre for Ageing (NICA), reveals that two in five people aged 50 and over are facing a retirement savings shortfall of at least a decade.
Fidelity’s new report, The Longevity Revolution: Preparing for a New Reality, highlights the need for an urgent rethink of how people prepare for longer lives. Drawing on global research across 13 markets and in-depth surveys of over 11,800 participants aged 50+, the report highlights the growing gap between rising life expectancy and financial preparedness.
The 10-year savings gap was revealed by comparing how long people expected their retirement savings to last against the average life expectancy in their location. Globally, 42% were under-planning by 10 years or more.
And with life expectancy continuing to rise, the challenge is only growing. By 2050, an estimated 3.67 million people globally are expected to reach 100**. When measured against a potential 100-year lifespan, four in five (81%) people aged 50+ are underprepared by at least a decade, with significant variations by country.
Sanela Kevric, head of sales Benelux: “People are living longer than ever, yet many are still preparing for retirements shaped by the experiences of previous generations." This mismatch between life expectancy and savings horizons risks leaving many underprepared. With the right planning, longer lives can be a positive reality, but it requires a new mindset and earlier action.”
Optimism remains even as planning falls short
Despite gaps in preparation, Fidelity’s research also uncovers a sense of optimism about retirement among many. Two in three (68%) of retirees describe their outlook as positive, compared to just over half (56%) of those yet to retire, suggesting that confidence often grows once people transition into later life. This optimism is also reflected in changing attitudes toward work and ageing. Seven in 10 (70%) of pre-retirees surveyed said they are likely to work at least in some capacity (voluntary or paid) in their retirement, primarily to stay mentally and physically active (38%) rather than as a financial necessity (26%).
The four pillars to longevity readiness
Financial stability, physical health, emotional wellbeing, and social connectivity are all vital elements in longevity readiness. Our research found that those who had taken steps to plan for retirement, such as preparing a budget or identifying potential income streams, felt significantly more ready for life after work across each of these measures.
This highlights how preparation serves as the foundation not only for long-term financial security but also for the maintenance of critical determinants of holistic wellbeing in later life.
Kevric adds: “When finances are secure, people can invest in their health, maintain social connections, and approach retirement with confidence. When they’re not, the entire structure is weakened.”
The critical success factors for longer lives
The report outlines five critical success factors to unlocking a roadmap to help people thrive in longer retirements:
1. Address financial anxiety early – Early financial guidance and education can reduce uncertainty and stress, helping people make informed choices and build long-term confidence.
2. Champion innovation in technology – Digital platforms, AI-powered tools and personalised guidance can bridge gaps in financial literacy with the appropriate guardrails, enabling individuals to plan more effectively.
3. Prioritise health and care – Addressing wellbeing and care needs early is essential. Helping people plan for health and care provision removes major uncertainties, supports independence, and improves quality of life.
4. Build trust in public systems and institutions – Transparent communication, reliable products and consistent policy frameworks are essential to building confidence in retirement systems.
5. Support holistic wellbeing – Timely interventions across all four pillars – financial, physical, emotional and social – ensures that no aspect of wellbeing is neglected, enabling individuals to enjoy longer, healthier, and more connected lives.
Kevric concludes: “A longer life should be something to look forward to, not fear. We have an opportunity to create the conditions for people to live longer, more fulfilling retirements. Organisations and policymakers who embrace longevity wisely will not only support individuals in achieving security and purpose, but also establish a society that is wealthier, healthier, and more cohesive than the one before it.”
