Nobody knows exactly how long they will live, so when it comes to retirement planning, there is no crystal ball to determine how long your savings need to last.
How confident do you want to be that your retirement plan can last as long as you live?
The chart below shows how over half of the people who have used the Optimum Pensions Lifespan Calculator to help estimate their personalised life expectancy and explore the question, “How confident do you want to be that your retirement plan can last as long as you live?” selected a confidence level of 95%, seeking a high degree of confidence they will not run out of money – wouldn’t you?
Building confidence in retirement
Retirees who have the confidence to spend more of their savings will enjoy a higher standard of living in retirement, which will be good for the broader economy. In our latest White Paper, David Orford and Jim Hennington show that to have a higher degree of confidence that your retirement income will last as long as you do, your financial plan (in years) has to have a greater chance of covering your whole potential future lifespan.
They examine different levels of confidence, how retirees can factor these into their retirement planning, and ways they can be more confident in retirement, including using the magic of pooling longevity risk.
Read our white paper : Planning for Retirement with Confidence