A third of retirees will live for more than 30 years


However, research from the company finds that retirees are highly likely to underestimate their life expectancy, with 25% of adults expecting to live between 16 and 20 years after retiring at 65 and 20% expecting to live for between 11 and 15 years.

Using data from the Office for National Statistics, Partnership says that at age 65, the average man can actually expect to live for another 21.5 years while the typical woman is likely to have a life expectancy of 23.7 years at age 65.

Partnership warns that this mismatch between expected and likely life expectancy can cause significant problems for investors that choose to invest their pension for income.

Indeed, even planning finances around ‘average’ life expectancy could cause some retirees to run out of money if they live longer than expected.


As such Partnership argues that rather than making a choice between the flexibility of income drawdown and the guaranteed income of an annuity, retirees should consider a combination of both.

This provides retirees with a guaranteed income to pay the bills along with capital that can be invested to cover ad hoc expenses and to guard against inflation.


‘It’s vital people guard against underestimating vitality’

Commenting on the ONS data, Richard Willetts, director of longevity at Partnership says: “Most people will work a margin of error into their retirement income planning, but 10 or more years is a significant period of time to make up from a finite pot of assets.

“Even those who have studied this subject extensively would struggle to definitively answer the question – how long will a specific individual live - so it is vital that people ensure they have some mechanism to guard against the consequences of underestimating their own vitality.”

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