Many people may underestimate just how long they could live for in retirement. And yet that difficult, and sometimes sensitive, question is at the heart of many of the current discussions around pensions, annuities and retirement income solutions.
Planning your retirement income is very tricky – your client may have no idea how long they will be around for or how long their retirement income needs to last. That's where our calculator can help.
Using the tool
This calculator helps give an indication of the chances of living to certain ages. It's based on UK Life Insurance and Pensions Industry Data* and your own assessment of your general health.
You may want to explain to your client that:
Excellent health - assumes that you are feeling pretty good and haven’t been to the doctors for as long as you can remember. Your height and weight are fine, and you don’t take any tablets for any health conditions.
Reasonable health – assumes that you are feeling okay health wise, but not brilliant. You have managed to give up smoking, and you take medication for Type 2 Diabetes.
Challenging health – assumes that your health is struggling as a result of a more serious condition such as Parkinsons that is impacting on your activities of daily living.
Critical health – assumes that you are suffering from a very serious medical condition, such as cancer, and undergoing treatment for it. You may find it difficult to get about, and possibly need assistance with day-to-day activities.
*The Continuous Mortality Investigation (2017).
You can find out more about the Longevity Calculator by contacting us.
Once your client has a better understanding of what age they may live to, and how long their funds may need to last, they can start to consider the decisions they make in retirement. For example, they may prefer to have a part of their income guaranteed, so that they have peace of mind that essential expenses and costs are likely to be covered.