A new report from MGM Advantage, put together with research conducted in October 2013, asked the following question of respondents:
“Being as realistic as you can, approximately how old do you think you’ll live until?”
Compared to the last Office of National Statistics (ONS 2012) forecast, the answer from the 55-64 year olds, proved interesting.
Living longer than we think
The research results indicate that 82% of people approaching retirement age are underestimating how long they are likely to live.
Men aged 55-64 estimated their average life expectancy to be 81 years old and women estimated it to be 79.
The official ONS figures show that the average 55-64 year-old is expected to live until 86 if male and 89 if female, meaning that men could be in retirement five years longer and women for ten years more than they expect.
Women vs Men
Women appear to be more pessimistic than men. 85% of females responding in the research, approaching retirement age, underestimate their likely longevity compared to 79% of men.
The research also found that 15% of women don’t expect to live past age 70, compared to 16% of men, and overall just over a third of 55-64 year olds can’t see themselves living beyond age 75.
So what?
The Chancellor’s Budget changed pensions forever allowing you more freedom and choice.
With choice comes risk. You are likely to live longer than you think and therefore outlive your savings. If you don’t plan properly then this is much more likely to happen.
A proper retirement plan is worth its weight in gold and doesn’t cost a fortune.
We have the tools to help you prepare for your retirement. Don’t you owe yourself a proper plan?
Want to discuss this further? Drop us a line advice@www.townclosefp.co.uk or ring us on 020 7993 4898.
Sources: mgmadvantage.co.uk