Of all the things in life to worry about, living to a ripe old age surely isn’t one of them.
Life expectancy is continuing to rise in the UK. And no-one could dispute that this can be anything other than a good thing. But even if we are lucky enough to enjoy many years of healthy retirement, that doesn’t necessarily mean we’ll have nothing to worry about.
Aviva’s research* suggests that many 50-65 year olds may well be underestimating their life expectancy – which could mean they’re also underestimating how much they need to put aside to enjoy the lifestyle they want throughout their retirement.
The research showed that men think they will live on average to 80 years, and women on average to 84 years. Both of these estimates are in fact a little lower than the national average – but what may be more worrying is the suggestion that many people aren’t really giving much thought to how they would live if they do manage to outlive their savings.
A third of the people we asked said that they would live the best way possible, without worrying about running out of money.
20% said they will simply live off the state pension if they outlive their savings.
Only 16% said they were looking at ways to make the most of all their assets (rather than just pension or retirement income) to cover the remainder of their lives.
Even underestimating life expectancy by a few years could leave people struggling in later life. And while the last thing we want to do is cause anyone to worry about living a long life, it’s well worth considering whether you really could manage on the state pension if you were to live longer than you’ve currently made provision for.
If you want to get an idea how your present retirement plans are shaping up, we’ve got a handy online tool to help you. My retirement planner can show you how varying the amount you put into your pension plan might affect your retirement income. It’s easy to use and only takes a couple of minutes.
We hope you find this tool useful... and that you enjoy a long and happy retirement!
*Research conducted by ICM Research for Aviva during June 2014 with a sample of 1,100 people aged 50-65 years.