· Life expectancy at birth in England and Wales in 2009-2011 was 78.7 years for boys and 82.6 years for girls.*
· The chance of surviving from birth to age 85 has more than doubled for men over the last three decades from 14% in 1980-82 to 38% in 2009-2011.*
*Source: ONS Website
Recent trends in UK life expectancy are well documented with both male and female ages steadily rising. Whilst this is good news for us all, the recent rises have been coupled with low gilt yields. Which if your approaching retirement is not so good news, as the result has been a continual downward pressure on the annuity income that can be achieved from pension funds.
Whilst this sounds ‘all doom and gloom’ for pension savings, there have been dramatic changes in pension legislation and various innovative options being made to those have or are approaching retirement, including the removal of the requirement to buy a pension. It is possibly now more important than ever to shop around for the best rates and consider all the options available, as with us all living longer a decision made today for the wrong reasons today could have lasting implications.