How old will you live to be?

Kevin Burge

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Avid readers (assuming there might be at least two of you) may recall how I wrote about the Beatles song and when you reach the ripe old age of 64.

Two more statistics have jumped out at me over the past couple of weeks both of which emphasise that pensions more than ever need to hold a much more prominent position in our thoughts.

Firstly the Department for Work and Pensions published a raft of statistics relating to the State Pension Age. I am not sure whether they are trying to hide bad news or jumping on the Royal baby bandwagon but nevertheless have stated that over a third of children born in 2013 will live to be at least 100. This is then compared to when the Queen was born (1926) life expectancy was 70, when Prince Charles was born (1948) it was 77 and when Prince William was born (1982) it was 85.

I don’t expect that the Royal family has to worry too much about their pension and whether they will be looked after if they become unable to do it themselves but you and I do and what’s more for a long time to boot.

Secondly the DeVere Group have said that an average 30 year old will need to save £824 per month if they want to retire on a pension of around £26,000 per annum assuming a retirement age of 65.

Both of these statistics should make people have a real think about what they are going to save and when they are going to start doing it.

I know that statistics can be made to say what you want them to but there is no escaping the fact that people are living longer and therefore they need to make sure that they can provide for themselves. The time to do something about it is now and not wait until you get to 64 and then wonder how you are going to survive for another 36 years when maybe the only thing to keep you going is the thought of the telegram (or will it be a text) from the Palace congratulating on you reaching your hundredth year.

Kevin Burge

Post by Kevin Burge

An experienced pension consultant with specific expertise in Scheme terminations - PPF, FAS transfer and winding up.

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