By Intense Life Desires 
Retirees could face financial woes
Retirees are living longer than they ever expected – and their finances may not be keeping pace, according to new research.
It reveals nearly a third (30%) of retirees in their 70s have already outlived the age they expected to reach when they were in their 50s.
Despite that the research from Aviva and Age UK shows that most (77%) still don’t believe they’ll live beyond 85.
The reality is that one in four 70-year-old men are expected to reach 92, and one in ten could live to 96. For women the odds are even higher – 5% of 70-year-olds have a chance of reaching 100.
The report highlights that financial decision making becomes more challenging with age, particularly due to cognitive decline. It says it is vital that people stay actively engaged with their retirement plans throughout later life – especially when it comes to managing pension withdrawals and considering later life annuities.
The ‘Retirement Reality: Managing Money in Mid-Retirement’ report calls for a shift in attitudes towards retirement planning.
It warns that adopting a ‘set and forget’ approach isn’t going to be enough for a retirement that could last decades longer than expected.
Emma Douglas, wealth policy director at Aviva, said: “We don’t have a crystal ball to tell us how long we’re going to live – and our report findings highlight that today’s mid-retirees could be making important financial decisions based on incorrect assumptions about life expectancy.
“It can be tricky to get the balance right for a sustainable retirement income – living for now, while also saving enough for later life.”
• The report was published by Aviva and Age UK in May. It is based on an online survey by Ignition House, conducted with a nationally representative sample of 1,000 UK people aged 65-75 years old with a non-advised defined contribution private pension, (excluding people in receipt of state pension only) who are on a moderate retirement income, and don’t pay for financial advice or have a final salary pension over £20,000 per year. Research was conducted from October to November 2024.
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