Comment on Longevity.
19 April 2011
“The DWP stats released today confirm that overall people in England are living longer but it is life expectancy at older ages where there has been the most dramatic rise. Over the last ten years, life expectancy at age 65 has risen by about 95 days per year for men and by 75 days per year for women.
This improvement in life expectancy makes it extremely difficult for an individual to estimate how long they can expect to live and probably why so many of us still greatly underestimate how long that will be. Research has shown that men between the ages of 60 and 69 tend to underestimate how long they will live by nearly 3 years and women by nearly 5 years. If they were to plan their retirement on this basis then many run a high risk of outliving their savings.
More people will be faced with the difficult challenge of calculating their expected longevity to ensure they do have sufficient saving in retirement particularly if they've chosen not to arrange an pension annuity. Arranging an annuity would ensure that an income continues to be paid, no matter how long the person might live, so great insurance against the cost of living longer."
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