If you live to 100 rather than 80, you will need double the amount of pension savings.
It’s generally agreed that we are all living longer. A man who’s currently 65 is expected to live to age 83, and a woman is expected to live to age 86. But the number of centenarians living in England and Wales is at a record high with 13,924 people aged 100 or older in 2021, according to the Office for National Statistics.
Our calculations show that retirees who end up living until they are 100 will need double the amount of pension savings compared to those who live until they are 80.
Want to enjoy a moderate* lifestyle in retirement? Here’s what you’ll need:
For the pension pot to last… | ||
…until age 80 | ...until age 100 | |
Size of pension pot needed at 66 years, after tax-free cash is taken | £155,000 | £315,000 |
Remember that the value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.
*This means having one foreign holiday a year and eating out a few times a month, according to the Pensions and Lifetime Savings Association