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Section 3

Financial Endurance

Pensioners need financial endurance as life expectancy increases. Conservative expectation about 20 years in retirement, which is about 5 years shorter than reality.

Most think their health is above average 
  • Worldwide 55 million people have dementia, this number will increase exponentially as the proportion of older people in the population increases1
  • However only 4 in 10 respondents have thought extensively about planning for cognitive decline like Dementia
  • And only 1 in 10 believe their health is below average

1 World Health Organisation (2021)

But expect to die before they reach average life expectancy
  • People think that they will live (on average) to age 80.
  • But actual life expectancy (on average) will be 85 years i.e.5 years longer.
  • The chart below shows what age people expect to live to, based on current age.

Average value of retirement savings

And many cannot afford to lose in a market crash

If you have control over how your retirement fund money is invested, what percentage do you think you could afford to lose in a market crash before it seriously impacts on your retirement plans?

And the less money saved, the higher the expected annuity rate

• Expectation is greater than reality, particularly for those who have not saved enough

Average expected income in retirement by amount saved for retirement

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