People are generally living for longer. Did you know that a male retiring now at age 65 can expect to live on average to age 83 and a female to age 85? This means your money has to provide you with an income for about 20 years!
For some people this could be much longer, as the figures below are average life expectancies.
(Source: ONS 2014)
When you consider how long you might be retired for, it is quite possible that you will need to provide an income for yourself for a significant number of years. Also, if you do not protect yourself against rising inflation, you may experience consequences such as living on much less than half the income you retired with when you reach your later years.
How Much Might Your Retirement Cost?
Retirement can last a long time, so you’ll need to consider this when working out a budget. Creating a budget can help to estimate how much income you might need in your retirement.
