Planning to make sure your retirement savings last
Many of us look forward to retirement as a time to relax and enjoy the fruits of our labour. However, an increasing number of retirees are facing an unexpected challenge: their lifespans are extending well beyond their initial expectations, and their financial plans may not be sufficient to keep up. This growing gap between life expectancy and financial preparedness is a critical issue for today’s retirees.
Recent research uncovers an unexpected trend. Nearly a third (30%) of retirees in their 70s have already surpassed their expectations from their 50s[1]. Despite this, a large majority (77%) still do not believe they will live beyond age 85. However, the reality is different. Statistics indicate that one in four 70-year-old men can expect to reach 92, and for women, the chances are even better, with a significant likelihood of reaching 100[2].
Re-evaluating your financial future
These findings highlight a serious concern: many individuals in mid-retirement may be making vital financial decisions based on outdated expectations about their life expectancy. As we age, managing complex finances can become more challenging, making it crucial to remain actively engaged in your retirement plans. Simply establishing a pension and leaving it untouched is no longer a practical strategy for a retirement that could last decades longer than anticipated.
Balancing a sustainable retirement income is a delicate task. You aim to enjoy a comfortable life now while ensuring sufficient savings for the future. The first step is to fully understand your financial situation and the options available to you. Having the right conversations at the right moments can help you prepare for a future that may be longer and more prosperous than you ever expected.
Strategies for a longer retirement
To ensure a financially secure retirement, it is crucial to think long-term. Your retirement may last 25 to 30 years, so planning for this period and regularly reviewing your decisions is essential. Keep a close eye on your pension withdrawal levels, as assessing your spending and savings is vital for meeting your needs both now and in the future. Overspending in the early years could lead to a shortfall later, but being overly cautious might prevent you from thoroughly enjoying your retirement.
It’s also wise to consider all your options. Annuities can provide the peace of mind that comes with a guaranteed, regular income later in life. Blended retirement solutions, which provide flexibility early on and security later, can also help your finances adapt as you progress through different stages of retirement. Developing a retirement strategy is not a one-time task; it’s an ongoing process that will likely evolve with your needs.
Source data:
[1] Retirement Reality: Managing Money in Mid-Retirement, May 2025.
[2] ONS Life Expectancy calculator. Based on data on 09/10/2025.
This article is for information purposes only and does not constitute tax, legal or financial advice. Tax treatment depends on individual circumstances and may change in the future. A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless the plan has a protected pension age). The value of your investments (and any income from them) can go down as well as up, which would have an impact on the level of pension benefits available. Investments can fall as well as rise in value, and you may get back less than you invest.
