Investing For A Retirement Until You Are 100


Deciding how much to save for retirement is always a thorny problem – but new longevity data pinpoints people may have to plan to live until they are 100.

The statistics reveal that today’s 45-year-olds will live at least three years longer than today’s 65 year olds.

But because the figures are averages, many could live a lot longer – possibly into triple figures.

The research by fund managers Fidelity International took information from the Office of National Statistics and predicts average longevity.

The unexpected result was anyone aged in their 40s today can expect to live longer than those retiring at 65 and should consider increasing their savings to cover the extra years.

How long will you live?

A 65-year-old woman retiring now can expect to live another 21.4 years – taking the average lifespan to 86.4 years, while a man of the same age is likely to live an additional 19 years 1 month, making their average lifespan 84.1 years.

A 45-year-old woman retiring at 65 in 2036 should expect to live until 89, while a man will have an 87-year lifespan.

Other data from 2011 shows how that the number of years spent in good health is also rising, and that the average time spent in good health has grown by more than a year on average in just a decade.

Wake-up call for savers

Ed Monk, associate director for personal investing at Fidelity International, said: “The fact that 45-years-olds, many of whom are themselves beginning to think about life after work, can already expect to live an average three years longer than those retiring now should be a wake-up call. That’s three more years to enjoy, of course, but three more years to factor into retirement plans as well.

“The value of this research is that it goes beyond broad trends to examine more closely what those years of extra life look like. The fact that it is not just overall life expectancy that is growing but time lived in good health too suggests that the current structure of a third of life spent in education, a third in work and a third retired is rapidly being overtaken, and the line between work and retirement is becoming more blurred.”

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