Understanding how long people expect to live doesn’t just influence their personal retirement choices; it also shapes how they value lifetime benefits. For trustees and administrators of public pension systems, this awareness gap presents a significant challenge to effective communication.

A new research brief from the Center for Retirement Research at Boston College finds that many adults underestimate their life expectancy, even when presented with data on longevity. This suggests that simple, well-targeted information can improve awareness, but only for certain groups, offering valuable lessons for pension systems seeking to educate members about lifetime income security.

The Story

In “Can We Help People Improve Their Life Expectancy Estimates?” researchers Karolos Arapakis, Anqi Chen, Qi Sun, and Gal Wettstein examined whether short, low-cost educational messages could help people form more accurate expectations about lifespan.

The study, supported by Pacific Life and conducted by Greenwald Research Associates through the Retirement Income Security Study, surveyed more than 2,200 full-time workers with 401(k)-type plans. Of those, about 1,950 participants ages 45 to 70 took part in a randomized experiment.

Participants were divided into three groups: a control group and two “treatment” groups that received information about their likelihood of living to older ages, one with simple probability data and one with additional context comparing their longevity to that of their parents.

Key Findings

According to the report, the interventions were effective but only for individuals who already relied on professional advice. Those who based their expectations on medical or financial advisors became more optimistic about living longer after receiving the information.

In that group, participants were eight percentage points more likely than the control group to believe they would live to at least age 85 after reviewing basic data on longevity probabilities.

Interestingly, adding more detailed information, such as comparisons to prior generations, didn’t improve results. “Less information can actually be better,” the authors wrote.

For most other respondents, particularly those who based their expectations on their parents’ age of death or on media coverage, the informational materials had no measurable impact.

What It Means for Public Pension Systems

While the research focused on private-sector workers, its lessons apply to the public pension sector. Many defined benefit plan participants underestimate how long they’ll collect benefits, which can lead to undervaluing guaranteed lifetime income or misunderstanding the purpose of funding assumptions.

The study reinforces what many pension educators already know:

• Simple messages work best. Overloading members with statistics or historical context isn’t as practical as sharing one or two clear, relatable facts about longevity.
• Trust matters. Members are more receptive when the information comes from trusted sources — a reminder of the important role plan administrators and trustees play in public confidence.
• Education is ongoing. Even with clear communication, improving longevity awareness takes time and repeated reinforcement.

The Takeaway

As the authors conclude, only certain individuals — those who already rely on professionals — respond strongly to information about longevity. For everyone else, simpler is better. Providing precise, concise data about the likelihood of living to specific ages can make a meaningful difference in how people perceive their financial future.

For public pension systems, that insight can help guide how we communicate with members about lifetime benefits, sustainability, and the enduring value of defined benefit plans.

Read More

Read the full research brief from the Center for Retirement Research at Boston College:
Can We Help People Improve Their Life Expectancy Estimates?

About the Author: Allen Jones is the director of communications and event marketing for TEXPERS. He joined the Association in 2017. Before TEXPERS, he worked in the news media industry, producing content for newspapers, magazines, and online publications and leading newsrooms as an editor and publications manager. [email protected]