Life expectancy estimates could help people plan for retirement better

News


28 Apr, 2014

Life expectancy estimates could help people plan for retirement better

The latest method the government is proposing to help future pensioners make the right decisions for their retirement funds is to provide them with a rough life expectancy guide. The news was announced by pensions minister Steve Webb following the decision to eliminate rules which force UK savers to use their pension funds to buy an annuity.

According to reports, experts will consider various factors when making their estimates including gender, where a pensioner lives as well as lifestyle choice such as whether they smoke or not, the pensions minister said. This will help with concerns that people often underestimate their life expectancy and end up struggling during their later years because they spent their funds earlier.

With the latest figures showing that life expectancy is rising, this is a legitimate concern that needs to be addressed. Females born this year in the UK are expected to live an average of 82.7 years, while the average life expectancy for males now stands at 78.9 years.

Webb assured that the advice would be given during face-to-face meetings and that the plans proposed would not be “crass and insensitive”.