12th February 2016
People aged over 65 can expect to live an extra 20 years, as people live longer than ever before.
A report from Public Health England shows a man aged 65 can expect to live for another 19 years and a woman of the same age another 21 years.
However, the concern is that healthy life expectancy is not keep up with increased longevity and not all people will benefit from the increases. Those in the North East and North West have lower life expectancies for 65-year-olds than other areas.
Stephen Lowe of Just Retirement said the average life expectancy between 2013 and 2014 rose around 100 days or 0.3 year.
‘Life expectancy for both sexes is higher not just at age 65 but also ages 75, 85, and 95. There are some regional variations but overall the national figures are positive,’ he said.
‘Public Health England makes the point that longer lives makes achieving good quality of life in later years even more important. One of the challenges for people is to put in place financial plans that remain suitable not just at retirement but through retirement.’
Lowe said that the biggest mistake retirees can make is to base their financial plan on average life expectancy figures ‘which aren’t useful at an individual level because so few people are average and no-one wants to run out of money’.
However, he said ‘people with pension savings also tend to do a lot better than average’.
‘For men aged 65 in average health, half will live to age 90 and a quarter to age 96. If in good health, half will live to 93 and a quarter to 99. For women of 65 the figures are between two and three years higher, with a quarter of those in good health living to 101,’ he said.
‘Given the increase in life expectancy it makes sense for people heading into retirement to think carefully about longevity risk – the risk of outliving their financial resources in later life. People now have a lot of options in retirement but some of the most valuable are guaranteed income solutions that provide peace of mind that the income will flow however long someone lives and whatever their state of physical or mental health.’