Why advisors need to address the retirement longevity gap now

Guardian's Nancy DeRusso explains to InvestmentNews how financial advisors can help narrow the so-called longevity gap.

Many Americans say they want a long retirement, but their preparation often falls short. That mismatch is the issue Nancy DeRusso, Guardian's recently appointed Head of Client Solutions, says the advice industry should be focused on solving.

Guardian Life Insurance's Mind, Body, and Wallet report, released in May, found that Americans recorded the lowest overall well-being and financial health levels in the 15 years the company has tracked those measures. Financial wellness remains the weakest area, with only three in 10 Americans saying their financial health is excellent or very good, and just 13% saying they are exactly on track to save enough for the retirement lifestyle they want.

DeRusso, who spent more than two decades at Goldman Sachs Ayco before joining Guardian in 2026, described the “longevity gap” as the distance between what people expect from later life and what they are doing to prepare for it.

“The longevity gap is the divergence between people's expectation that they will live long healthy lives, and what they are actually doing to prepare for it,” she said. “Our research shows that most adults imagine their older years as an active, engaged life stage and not a period of withdrawal. Despite this, many aren't laying the groundwork for a long and healthy life — just one-third say they are getting enough exercise or do a good job of taking care of their mental health, and two-thirds say they are doing a poor job of living within their means.”

She sees a clear opening for advisors. “For financial advisors, this is an opportunity to make sure their clients are taking the right steps today to feel financially confident and fund a long retirement.”

The surprise in the latest data

According to DeRusso, the report’s biggest takeaway is the gap between optimism and readiness, especially among younger adults.

“There is a significant disconnect between optimism and preparedness. Americans envision a long, active, and fulfilling retirement, yet also self-report the lowest overall well-being in 15 years,” she said. “Younger adults, including Gen Z, face particular challenges and self-report lower financial well-being scores than other generations.”

Still, she said younger people also have the most room to strengthen their outlook and retirement preparedness.

“With time on their side, they can begin to establish good financial habits, such as building emergency reserves, saving consistently, investing for long-term growth, and participating in workplace retirement plans,” she said.

For advisors, that means helping younger clients build a strong foundation early and using that groundwork to plan for longevity over time.

Looking beyond simply saving more or working longer

Guardian's research found that 41% of respondents worry their retirement savings will not last as long as needed, but DeRusso said advisors have more tools available than many clients realize. She also urged the industry to rethink how retirement spending actually happens.

“We sometimes think of retirement expenses as gradually increasing year after year with inflation, but largely being consistent,” she said. “In reality, consumer behavior suggests that retirement expenses are more U-shaped, where we start off in the 'every day is Saturday' phase, settle into a new normal, and then see a spike in the later years due to end-of-life costs.”

That more realistic view should shape distribution planning, she said. “With a more realistic understanding of retirement expenses, financial advisors can help clients think about how to spend those assets and be as intentional about distribution as they are about savings.”

The conversation many advisors avoid

DeRusso said one of the biggest blind spots in client relationships is health.

“It can be hard for advisors to talk about the health aspects of aging with clients. Our report found that only 40% of Americans say they do a good job keeping up with routine doctor visits, only 31% get enough exercise, and just 27% eat a healthy diet. While advisors are not doctors, the finances of aging and health are real,” she said.

“If clients expect a long and active retirement, advisors should help them think through how their health may affect future cash flow, housing decisions, caregiving needs, and health care expenses,” DeRusso said. “For example, do they want to age in place or move into a retirement community? How are they accounting for long-term care and insurance costs? Are we funding a lifestyle that includes staying active and fit?”

She added that health can change quickly, so plans should account for that possibility as well. “A client's health status can also change quickly and unexpectedly. While the goal is always a long and healthy lifetime, conversations should also involve what happens if someone's health deteriorates and how that could impact planned retirement spending.”

Her advice for the industry is to ask the difficult question.

“Don't be afraid to discuss clients living longer than average. Ask them, 'what happens if you live longer than everyone in your family that's come before you?' Have you thought about what those additional years might look like, including your financial needs, health considerations, and the lifestyle you hope to maintain? That type of guidance can make all the difference to a successful retirement,” she said.