Research by Nottingham University Business School has shown that people are underestimating how long they will live by five years or more, believing that their pensions will be payable for a shorter time. This will, in turn, affect their pension provision in later life. Individuals are now expecting to live around 80.5 years, while smokers have lower expectations, on average 76.8 years. This is an underestimation by men of around three years, and women of almost five years.
The study of around 4,000 people also showed that the greater peoples' awareness of how long they were likely to live, the more likely they were to buy pensions. It found that every one-year of higher longevity increases the pension proportion by around 0.15%. If the estimates found in the research were corrected, then the voluntary pension take-up would increase by almost 50%.
Our view
We all need to plan more for our old age. Please take things more seriously and plan ahead. Get advice from us.