Two in five people aged 50 and over are facing a retirement savings shortfall of at least ten years, prompting calls to rethink how people should prepare for longer lifespans, and longer retirements.
That’s according to research from investment solutions firm Fidelity International in partnership with the National Innovation Centre for Ageing, presented in a new report titled The Longevity Revolution: Preparing for a New Reality.
The report draws on global research across 13 markets, involving over 11,800 participants aged 50 and above. It found a widening gap between rising life expectancy and financial readiness for retirement, as 42% globally are under-planning by a decade or more. In the UK, the figure drops slightly to one in three (35%).
As people continue to live longer, the challenge is expected to intensify. By 2050, an estimated 3.67 million people worldwide are projected to reach the age of 100. When measured against a potential 100-year lifespan, four in five (81%) people aged 50+ are underprepared by at least ten years. In the UK, seven in ten (74%) fall into this category.
“People are living longer than ever, but too many are preparing for retirements experienced by their parents and grandparents,” said Stuart Warner, Global Head of Platform Solutions at Fidelity International. “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 In Retirement Despite Financial Shortfalls
Despite the financial gaps, the research suggests many remain positive about later life. Two in three (68%) retirees describe their outlook as positive, compared with just over half (56%) of those yet to retire. In the UK, optimism is notably higher, with 74% of retirees describing their outlook as positive compared with 56% of pre-retirees.
Attitudes towards work and ageing are also evolving. Seven in ten (70%) pre-retirees expect to continue working in some capacity during retirement, whether paid or voluntary. For most, the motivation is not financial necessity (26%) but the desire to stay mentally and physically active (38%).
The findings suggest that while many are not fully prepared financially, they are increasingly open to reimagining retirement as a period of purposeful activity rather than complete withdrawal from work.
The Four Pillars Of Longevity Readiness
The report identifies four key elements that contribute to what it calls “longevity readiness”: financial stability, physical health, emotional wellbeing and social connectivity. Respondents who had taken proactive steps such as preparing a budget or identifying potential income streams reported feeling more prepared for life after work across all four areas.
According to the research, preparation not only supports financial security but also strengthens overall wellbeing.
“When finances are secure, people can invest in their health, maintain social connections, and approach retirement with confidence,” Stuart added. “When they’re not, the entire structure is weakened.”
Building Confidence For Longer Lives
The report also outlines five success factors to help individuals and organisations adapt to longer retirements. These include addressing financial anxiety early, using technology to improve financial literacy, prioritising health and care, strengthening trust in public systems and institutions, and supporting holistic wellbeing.
Each of these areas, the report suggests, can contribute to a more resilient approach to later life by reducing uncertainty and promoting independence.
“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,” Stuart said. “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.”