According to the data, when asked what age they expect to live to, the average answer from over 50s was 82 years old. Men estimated a lower life expectancy than women (81.2 years compared to 83 years).
Official data from ONS shows that 50 year olds are currently expected to live until 86 if they are a man, and 89 if they are a woman. This means that men are typically underestimating their life expectancy by almost five years, and women by six.
Andrew Tully, Pensions Technical Director at Retirement Advantage, comments: "While it is clearly positive that people will live longer on average than they think, it could have a significant impact on their finances. Our data shows that the over 50s consistently underestimate their life expectancy despite the constant news stories about improving longevity and availability of online resources to help people plan for retirement.
However it is important to remember averages are just that. We are all different and averages mask significant differences in life expectancy across the UK. Which is why it is key to seek proper financial advice when planning for the future. An adviser will help design a plan for your personal retirement journey which considers all the risks, be that investment risk, or the risk of outliving your savings.
Retirement Advantage’s research also reveals stark differences in predicted life expectancy depending on where over 50s live. Londoners expected to live the longest with an average of 83.6 years old, while the lowest, in Wales, was four years less at an average of 79.5.
Andrew concludes: "Reports that the rate of improvement in life expectancy has slowed may explain why many over 50s are underestimating how long they will live. But given the likelihood that most will survive long after their 80th birthday, they should ensure that the health of their finances is worthy of the celebrations."
