How long will you live in your retirement years?
Somebody recently mentioned that the world’s oldest man passed away in November at the extraordinary age of 112.
John Alfred Tinniswood, who lived in a care home in Southport, was born in August 1912 and became the world’s oldest living man in April this year. The interesting bit is that John retired in 1972 at the age of 60. That means he was retired for 52 years!
This got us thinking about the time we are likely to spend in retirement. Retirement ages will vary, of course, but since John retired at 60, let’s use that as our benchmark.
As the chart above shows, on average, a man aged 60 today in England and Wales can expect to live for 24 years, while for a woman it’s 26 years, according to the Office for National Statistics.
Around one in three people aged 60 today will live into their 90s, and around one in seven people will reach 100.
As stewards of capital, it is our purpose to help people meet their financial goals, and one of the most common goals is to have enough money in retirement.
The stark reality is that we are all living longer, and that has important implications for how much we need to save.
Implications for retirement savings
- Pension contributions: a longer retirement means the need for larger pension contributions during working years to ensure sufficient income.
- Withdrawal strategies: longevity necessitates careful planning around withdrawal rates to avoid depleting funds.
- Inflation-proofing: longer retirements increase exposure to inflation risks, making growth-oriented investments more important.
How we can help
There was nothing extraordinary about John, which means any one of us could find ourselves living far longer than we might anticipate. Therefore, we believe it’s vital to see investing as a lifelong journey. While retirement day might be a key milestone along the way, it’s by no means the end of our investment journey. In fact working with us could well mark the start of that journey.
Given longevity, financial planning is more important today than ever and getting the right advice is also crucial to give you peace of mind ahead of their retirement years. A well thought out retirement plan is vital. It’s still a long way off, but it will pay to regularly save as much as possible. We’re happy to offer our professional help and guidance, so if you’d like to start the ball rolling, why not call us on 0808 123 4321 to arrange to meet us, all without obligation and at our expense.
Logic Wealth Planning provides independent financial advice in Manchester, Bury, Rochdale, Cheshire, and the surrounding area, but not limited to the region.