Pre-retirees underestimate life expectancy by a number of years
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Individuals aged 50 and over on common consider they are going to dwell till round 80 regardless of official figures suggesting they are going to dwell for a number of years longer.
The hole between expectation and actuality suggests {that a} new retirement hole opening up, in keeping with one pension supplier.
Canada Life requested pre-retirees how lengthy they thought they’d dwell. Female and male respondents each stated they anticipated to dwell till age 80.
However in keeping with the ONS life expectancy calculator, a male aged 50 will, on common, dwell to 84, whereas a ladies aged 50 will dwell on common to 87.
The hole in expectation and actuality creates further pressures on retirement planning and a unique kind of retirement hole, in keeping with Canada Life, particularly given the alternatives nearly all of folks presently make round their plans, selecting unsecure retirement revenue over any kind of assure.
Nick Flynn, retirement revenue director at Canada Life, stated: “Longevity danger is the one recognized unknown in retirement planning, but when persons are underestimating their life expectancy, this opens up a brand new retirement hole.”
He stated one in 4 ladies aged 50 as we speak can count on to get pleasure from retirement into their 90s, usually residing till 95.
He warned that individuals not having conversations about their very own mortality will go away them open to falling brief in the case of their retirement revenue.
He stated with the numerous enchancment in annuity charges witnessed over the previous 18-months, annuities deserve greater than a secondary look.
The analysis was performed amongst 2,000 UK adults, of which a consultant pattern of 955 had been aged 50 and over. Fieldwork was performed by Opinium between 28 April and a pair of Could.
ONS life expectancy calculator: https://www.ons.gov.uk/peoplepopulationandcommunity/healthandsocialcare/healthandlifeexpectancies/articles/lifeexpectancycalculator/2019-06-07
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