With more and more people expected to live into their 80s and 90s, new research suggests that Britons approaching retirement age may not have made adequate financial plans for life after work.
The research, which was carried out by Fidelity International, suggests that as many as nine out of 10 people who are approaching retirement age are likely to go through their savings at an unsustainable rate.
Furthermore, the research reveals that 70% of people aged over 55 who have not yet retired do not currently know how heavily they will have to rely on their savings.
People approaching retirement have yet to fully grasp the implications of increased longevity. Today’s 65-year-old has a 50:50 chance of reaching 87 years old and a couple retiring at 65 face a one in six chance that one of them will live to be 100. People could find themselves in retirement for up to 35 years, almost as long as they spent in their working lives, said Simon Fraser, president of institutional business at Fidelity International, as quoted by IFA Online.