As many as eight in 10 (78%) over 50s are significantly underestimating how long they can expect to live.
According to research from Retirement Advantage among people aged between 50 and 64, the average respondent said they expected to live until they were 82.
However official government figures show that the average life expectancy for a woman of that age is actually 90, compared to 88 for men.
With pension freedoms now offering retirees easier access to their retirement savings from age 55, Retirement Advantage, says its vital that over 50s get a better understanding of how long their money may need to last.
Andrew Tully, pensions technical director at Retirement Advantage says: “Planning for retirement can be a complicated business and no one knows how long they will actually live. The pension freedoms have given people the opportunity to plunder pension pots early, often before planned retirement ages. This is potentially storing up trouble for the future, especially if people are underestimating how long these pensions need to last in retirement.”
He adds: “This is an area where proper financial advice is key. An adviser can make a plan for your personal retirement journey which considers all the risks at play, whether that be investment risk, or the risk of living longer than you may have expected.”
See our Pensions section for more information and help on retirement planning.