Preparing for Increased Life Expectancy: Importance of Financial Advisors

A recent study highlights a troubling lack of progress in preparing for increased life expectancy among Americans, especially those without financial advisors.

The 2026 Longevity Preparedness Index (LPI), created by John Hancock and MIT AgeLab, has maintained an average score of 60 out of 100, showing no improvement from the previous year. The index assesses preparedness across key areas, including social connections, financial readiness, daily activities, and health. Despite growing awareness of longer life spans, Brooks Tingle, President and CEO of John Hancock, emphasized that this understanding lacks impact without support systems to manage the needs of an aging population. Among the evaluated areas, 'community' and 'social connection' rated highest, while 'care', 'home', and 'health' scored lower, highlighting particular concern over long-term care, which scored just 43.

Role of Financial Advisors in Longevity Planning

Financial advisors play a pivotal role in bridging gaps in care planning. The data distinctly points out that individuals with financial advisors score better on the LPI, averaging 67 compared to 58 for those without. Wayne Park, CEO of Manulife John Hancock Retirement, reflects on how financial professionals contribute positively to clients' preparedness for longer life spans. Better preparedness is associated with individuals who integrate financial planning with health and caregiving considerations. The study further notes that higher assets or incomes correlate with higher preparedness scores, with varying readiness across age, income, and ethnic demographics.

Regional Discrepancies and Resources for Improvement

Regional disparities also emerged, with the Northeast recording the lowest overall scores. In response, John Hancock is introducing tools like the Longevity Preparedness Tool to assist consumers and advisors alike. Joe Coughlin, Founder and Director of the MIT AgeLab, emphasizes the importance of broadening retirement planning discussions to include housing and care management. These findings and additional resources are available on John Hancock's website, offering consumers and professionals access to insights and planning aids essential for addressing longevity challenges effectively.