What age to plan living to
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JoeEngland
Posts: 445 Forumite
My spreadsheet goes up to when I'm 90, not because I expect to live that long but because DW is 4 years younger. This seems to fit in with advice on here to plan finances until age 85-90. Since none of us know how long we'll live, this study may help think about what age to plan to:
https://www.google.co.uk/url?sa=t&source=web&rct=j&url=http://www.elsa-project.ac.uk/uploads/elsa/report08/ch8.pdf&ved=2ahUKEwinr5jC3JfcAhUrCMAKHbx2Bf0QFjAHegQIBRAB&usg=AOvVaw1mvnxMseJ5XrLpyMzv_Ykv
https://www.google.co.uk/url?sa=t&source=web&rct=j&url=http://www.elsa-project.ac.uk/uploads/elsa/report08/ch8.pdf&ved=2ahUKEwinr5jC3JfcAhUrCMAKHbx2Bf0QFjAHegQIBRAB&usg=AOvVaw1mvnxMseJ5XrLpyMzv_Ykv
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I find the Regulator's Scheme Funding statistics is a handy reference.
Pages 18 and 19 show the assumptions Defined Benefit schemes are using about mortality in convenient charts.
It looks like this year only covers 45 year olds, previous years covered both 45 and 65 year olds.0 -
99 for my widow, a week next Tuesday for me.Free the dunston one next time too.0
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I am hoping that one is a bit pessimistic as it says I will be dead before 80 and that is certainly not my intention!I’m a Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
JoeEngland wrote: »My spreadsheet goes up to when I'm 90, not because I expect to live that long but because DW is 4 years younger. This seems to fit in with advice on here to plan finances until age 85-90. Since none of us know how long we'll live, this study may help think about what age to plan to:
https://www.google.co.uk/url?sa=t&source=web&rct=j&url=http://www.elsa-project.ac.uk/uploads/elsa/report08/ch8.pdf&ved=2ahUKEwinr5jC3JfcAhUrCMAKHbx2Bf0QFjAHegQIBRAB&usg=AOvVaw1mvnxMseJ5XrLpyMzv_Ykv
In the absence of any other factors, I usually plan through to age 100 for my clients, and will also look at the possibility of up to five years in a care home as well. It's a very pessimistic view indeed, but it's designed to show just how unaffordable retirement can end up being if costs aren't controlled in the early years.
Remember that things like actuarial tables and ONS life expectancy figures are dealing with large populations, which tend towards a somewhat predictable distribution. A single individual is much more difficult to predict, and can end up falling at either end of a population distribution. Only planning to the average would give you a 50% chance of being financially unprepared to live to your actual date of death.I am a Chartered Financial Planner
Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.0 -
Similar for me. My spreadsheet goes to age 93 and the plan is to have enough money left at that age to cover at least 5 years in a care home, assuming only one of us is left. Of course, if my wife or I go earlier then plans will change. If we both need to go into a care home that may be a bit tougher.In the absence of any other factors, I usually plan through to age 100 for my clients, and will also look at the possibility of up to five years in a care home as well. It's a very pessimistic view indeed, but it's designed to show just how unaffordable retirement can end up being if costs aren't controlled in the early years.0 -
I'm aiming for 93 as that's the age my paternal Grandfather died, my great Grandfather lived to be 96 and I've tended to take after that side of the family rather than my Mother's side.0
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That death clock gives me 15 more years.
I think it's probably a little upbeat and optimistic.0 -
In the absence of any other factors, I usually plan through to age 100 for my clients, and will also look at the possibility of up to five years in a care home as well. It's a very pessimistic view indeed, but it's designed to show just how unaffordable retirement can end up being if costs aren't controlled in the early years.
Remember that things like actuarial tables and ONS life expectancy figures are dealing with large populations, which tend towards a somewhat predictable distribution. A single individual is much more difficult to predict, and can end up falling at either end of a population distribution. Only planning to the average would give you a 50% chance of being financially unprepared to live to your actual date of death.
I posted the link because it shows how various factors such as marital status can affect life expectancy and so give people a better idea of how long they might live. Ultimately it comes down to a personal decision about what's most important. Do you work until you can no longer do so just to build up even more money just in case you live to 100 and/or need money to pay for a nursing home, or do you take a risk to really live life by retiring earlier but not have guaranteed funds until you're 100? TBH I find the idea of working into my 60s, even assuming I physically could, to be utterly depressing and therefore plan to retire early with a feasible but modest financial plan.0
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