Fidelity study shows gap between life expectancy and financial retirement planning

A study by Fidelity International in collaboration with the National Innovation Centre for Ageing (NICA) shows that two in five people worldwide aged 50 and over (42 percent) have a retirement gap of at least a decade, meaning they plan their retirement savings to last ten years less than needed. This indicates that while investing in funds has become well established, people need more support during the payout phase.

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The fact that people in the Western world are living longer is, in principle, good news. The strong interest in a long life in good health and vitality is reflected in numerous media reports on the topic. Recently, Elon Musk was reported to have said at the World Economic Forum in Davos that ageing may be technically solvable. He believes there is a central biological clock that could be influenced.s

However, longer life expectancy does not only mean more time, it also presents challenges for retirement planning. The longer we live, the longer the money we have saved for retirement must last.

11,800 people surveyed about their retirement provision

The study by Fidelity International in collaboration with the National Innovation Centre for Ageing (NICA) shows that two in five people worldwide aged 50 and over (42 percent) have a retirement gap of at least a decade, meaning they plan their retirement savings to last ten years too little.

The study, titled The Longevity Revolution: Preparing for a New Reality, is based on a global survey in 13 markets and in-depth interviews with more than 11,800 participants aged 50 and over. It underlines that people apparently need to prepare differently for a longer life than they have done so far.

Growing gap between rising life expectancy and financial preparedness

The ten-year gap was identified by comparing life expectancy in each country with respondents’ expectations of how long their retirement savings would last. Worldwide, 42 percent plan for at least ten years too little, in Germany this applies to more than half (54 percent). In contrast, people in China, Singapore, and Taiwan appear to plan more realistically.

By 2050, an estimated 3.67 million people worldwide will reach the age of 100, according to the Pew Research Centre. If a potential lifespan of 100 years is considered, nearly four out of five people aged 50 and over (81 percent) have a gap of more than a decade, with significant differences by country. In Germany this figure rises to almost nine out of ten (87 percent) who are not adequately prepared.

Early action is crucial for retirement planning

Susanna Wooders, Country Head Germany at Fidelity International, comments: “People today live longer than ever before. Yet many are still preparing for retirement as their parents and grandparents did. The discrepancy between life expectancy and savings horizons carries the risk that many will be poorly prepared. With the right planning, a longer and worry free life can become reality, but this requires new thinking and early action.”

In Europe the focus is still too much on the savings phase

The fund industry could also provide better support here than it currently does, at least in Europe. Marketing strategies still focus heavily on the accumulation phase. Savings plans are widely available and easy to set up, even with very small monthly contributions such as 25 euros or even one euro.

However, there is still a need for solutions when it comes to asset drawdown strategies. How much should be saved by retirement to allow for 100 euros of monthly withdrawals? How high can monthly withdrawals from fund assets be if the goal is to preserve capital or to use it up by the end of life? Very few discount brokers offer withdrawal plans at all, meaning it is technically not always possible to set one up. If someone also wants to sell a fixed number of fund units regularly instead of a fixed amount, to avoid a negative cost average effect, options become even more limited. There is therefore considerable need for action, especially given the large baby boomer generation now entering retirement. This area certainly holds significant business potential.

Retirees are ultimately quite optimistic

In the end, people seem to come to terms with their financial planning in retirement, as the Fidelity study shows a certain optimism about retirement. Two out of three retirees (68 percent) describe their attitude as positive, compared with just over half (56 percent) of those not yet retired. This suggests that confidence often grows once people enter retirement. In Germany, 60 percent of retirees describe their attitude as positive, compared with only 54 percent of those not yet retired. This optimism is also reflected in changing attitudes toward work and ageing. Seven out of ten respondents (70 percent) expect to work longer, mainly to stay mentally and physically active (38 percent), and less out of financial necessity (26 percent).

Preparing for a long life across four pillars

What strengthens optimism is being prepared for a long and fulfilling life. This mainly concerns four key factors:

• Financial stability
• Physical health
• Emotional wellbeing
• Social connections

The study shows that those who have taken steps to plan for retirement, such as creating a budget or identifying potential sources of income, feel significantly better prepared for life after work in all of these areas. This highlights that preparation not only forms the basis for long term financial security, but also for maintaining the key elements of holistic wellbeing in later life.

Susanna Wooders adds: “When finances are secure, people can invest in their health, maintain social connections, and approach retirement with confidence. If they are not, the whole structure is out of balance.”

Foto: Canva (2026)

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