I’ll more than likely live longer than my dad

Posted on: 02 March 2015 by James Hester

As everyone is living longer and longer, it’s all too easy to underestimate how much you need to save so you can enjoy your retirement to the full.

Pension planning essential to happy retirement

It is important to save as much as you can, and a Workplace Pension is the easy way to do it. Changes with the introduction of what’s known as “Automatic Enrolment” mean you could also get extra money from your employer going into your pension pot. With your contribution effectively doubled by your employer and tax relief (based on minimum contribution rates)It’s never too early or too late to benefit from joining a Workplace Pension.

Someone who retires at 65 today has a good chance of living for another 20 years in retirement, which means you should probably save and budget for your pension pot to last at least this length of time. A Workplace Pension is the ideal way to do this, and it’s hassle free for you as your employer has to do all the admin.
Your retirement could even last a lot longer than 20 years, particularly as projected life expectancy keeps rising as technology and healthcare gets more sophisticated, so it is important that you think about a Workplace Pension.

Save as much as you can

Assumptions play a big part in planning for retirement but you can also know what lifestyle you want to live and how much this will cost. A Workplace Pension means your boss helps you afford the things you want to do in your retirement.

While the future is uncertain for everybody, the best way to guard against running out of funds in retirement is to save as much as you can possibly afford in your pension each month, and do so as early as possible.
Changes in the law with the introduction of Automatic Enrolment mean that your employer should also have to make contributions to your pension. You should never think of it as being too late to join a pension scheme, especially as you could be turning down extra money from your employer as well as tax relief.

Although your dad or grandad might have died at 60, statistically speaking you are quite unlikely to do the same Your retirement may well last a lot longer than you think and you could easily underestimate how much you need to save . In the past 25 years, life expectancy at age 65 has increased by 5 years for men and 3 years for women.

Longer retirement, better future

  • Recent figures from the Office for National Statistics (ONS) showed that women were now projected to live to 82.7 years – a year longer than they were expected to only four years previously.
     
  • Men have gained even more, and are now expected to live 17 months more than they were before, living to an average age of 78.9 years.

Another interesting statistic from the ONS is that there are now around half a million people living in the UK aged 90 and over.

For more information visit DWP Workplace Pensions 
 

Return to 'We're All In' Workplace Pensions hub 

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