Luck, smart choices and engagement are the big three factors to enjoying what is becoming an increasingly longer life.
The average life expectancy in the U.S. is 76.1 years., according to a 2022 report by the CDC. For women, life expectancy is 79.1 years, and for men, 73.2 years.
Economist Debra Whitman, author of “The Second Fifty: Answers to the 7 Big Questions of Midlife and Beyond,’’ said the lucky among us were born in the right zip code, where the right elements are in place to get people off to a good life.
“We know about healthy habits: eat right, exercise, don’t drink, don’t smoke, maintain healthy body weight. But we also need to be engaged in meaningful work and relationships; that can add about 7.5 years to life,’’ Whitman said.
These variables contribute to social solidarity and cohesion, and as life lasts ever longer, a positive view of aging, she said.
“If you have a positive view on aging, you will do healthier things, like doing something that you love,’’ Whitman said.
The third part of the pie is getting as much education as possible, which she said, is the path to better paid, more satisfying work, which helps lead to better housing, food, healthcare and more options for recreation.
Important Issues in Aging
Whitman, 54, is AARP’s chief public policy officer and former staff director for the Senate Special Committee on Aging. She spoke at a recent Stanford University Longevity Book Club webinar. Whitman has a doctorate in economics from Syracuse University. Her research into longevity led her to write the book, which centers on issues that became important when she reached 50.
“I looked at the practical things: How long will I work? Will I have enough money? Where will I live? How much care will I need as I age? And how will I die?’’
For many, the answers to those questions change the outlook on increased longevity from being a blessing to a burden.
A secure retirement depends on having personal savings from a pension, plus a plan such as a 401(k) or IRA, and Social Security, said Whitman. “But the 401(k) system and pensions are both accidents of history. Nobody sat down and designed them for everybody, and that is part of the problem,” She said, noting that “half of American workers can’t save through their paychecks for retirement, so they have to figure out how to save.’’
Further complicating things is the prediction that by 2035, Social Security revenue will be in shortfall. Whitman said Social Security will not go bankrupt — “I have very high confidence that Society Security will be made solvent for the future’’— but the uncertainty of the system preys on current and future beneficiaries.
“Because of the uncertainty, people feel they don’t know how much to save for their future, and they don’t know how Social Security works; we are leaving them in a risky state,’’ she added.
Women Face More Retirement Challenges
For a variety of reasons, women are more vulnerable at retirement than men, Whitman said.
“Women have several challenges: they live six to seven years longer than men, and they are paid 80 cents on the dollar, or $1 million less than men’’ over a lifetime, she said.
“If you look at retirement balances, they are much lower for women, partially because women take time out for caregiving or quit work before they wanted to for caregiving, and all that stacks up against women.’’
To maintain a certain standard of living, women have to work longer, but their Social Security benefits are still about $4,000 less annually on the average than men’s.
“Even worse news: Women face higher rates of age discrimination than men, so even though we need to work longer, women have a harder time finding jobs after age 50, particularly if you look at women of color,’’ Whitman said.
The crucial fact, she said, is that women should be paid equally to men. If they were able to pay for childcare and elder care, they could stay in the workforce and increase their lifetime earnings.
Based on her current research, Whitman said that there are not that many people who work past age 70. “To some degree, it’s not because they love their job; they really need the money,” she said.
“I spoke to a woman named Cathy, who had retired from a job as a medical technician and had a little bit of a nest egg, until that got eaten up, and then her car broke down and there went her retirement savings. She was working as a greeter in a grocery store, and standing for hours and hours a day,’’ Whitman said.
Creating Jobs for Older Workers
“We have to make it easier to work longer for people who need to keep working,’’ Whitman said. “People have poorer health as they age. Even those who are in healthy condition physically have a hard time with demeaning, physical jobs. It’s hard to do these jobs in your 60s and 70s. We need to create more jobs for older people.’’
Multigenerational workforces or mixed-age teams are more productive than single-age groups, she said. She suggested job training be created for older workers, so they don’t leave the company.
“We also need to pass laws to improve standards so people can prove that they were fired because of age discrimination. And workers need to keep their skills up. They need to think through what they are passionate about.
“They may have had a career that is no longer right for them, but they may still be able to get something that is either paid or volunteer that is right for them.’’
She said it’s good for the economy to have the workforce grow.
“Many people think there would be more jobs if people retired but the truth is that the more workers we have, the more jobs we have,” she said. “Look at what happened when women came into the workforce: More jobs were created.”
The flexible work-from-home and hybrid work policies that developed during the pandemic and still continue in part “have been a boon for the disabled and older workers, who might have had mobility issues,” Whitman added. “That flexibility helped them stay in the workforce.”
An Innovative Caregiving Program
Whitman’s work in Washington showed her that the government moves slowly in small steps, but that changes and improvement can happen. For instance, negotiations helped lower the cost of drugs for older Americans, she noted.
She also cited Washington state’s “WA Cares’’ program, which assists family caregivers by helping to pay for a variety of services. Covered services include in-home caregivers, paying a family member to provide care, food delivery, transportation to medical appointments, home safety modifications, wheelchairs, scooters and care supplies. The WA Cares program pays a benefit up to $36,500, adjusted annually for inflation. Under the program, all workers contribute to the Washington Cares fund during their work years, and when they need care, they can access their earned benefit to pay for services.
Whitman said that for about a third of Washington state residents, the $36,500 maximum benefit will cover “all the care they need in a lifetime. For everyone else, it will provide immediate relief from long-term care costs without the need to spend down their savings, as well as time to plan for any future needs,” she said. “For people with private long-term care insurance, WA Cares can help cover the benefit waiting period.”
More Positive Change
On the drawing board are government programs to help make communities age friendly. Whitman said the model being used is based on a World Health Organization program.
“Cities can use the WHO model to develop a plan with residents about what they need to do for long-term needs and social engagement. In 12 years, we have seen 900 communities created in the program,” she said, referring to the U.S.
“It’s the kind of change we need to be seeing; we don’t take demographic change as seriously as climate change, but these are two things that will change the face of the planet,’’ Whitman said.
Additional Reading: How to Fix the Broken Home and Flood Insurance Systems
In May 2024, the Biden Administration announced the strategic framework for a Master Plan on Aging.
“The hope is that a plan can be ready for the White House Conference on Aging next year. We will see with the change in administrations if they pick this up,” Whitman said. “We have to have federal as well as state leadership.’’
Eleanor O’Sullivan is a writer for Rethinking65. In a four-decade career in journalism, she has reviewed many books on best practices for financial advisors.