Pension life expectancy calculator
In order to successfully plan for your future, you should take into account your life expectancy. With the calculator below – courtesy of the Office for National Statistics – you can see how long you are likely to live, and the likelihood of you reaching an advanced age.
How to use the calculator
Using the tool is easy – simply input your current age, select whether you are male or female, and click "Calculate your life expectancy".
The calculator will then show you the average life expectancy for people your age and how many years it will take for you to reach this age. It will also display the "one in four" and "one in ten" chances of you reaching certain advanced ages, and the percentage chance of you reaching 100. Below these statistics, the probability (%) of you reaching particular ages is shown on a graph.
Why should I plan?
Planning for a pension is very important. If you fail to save up enough money as you get older, you may be left without the money you need to maintain your desired quality of life. Getting a good idea of how many years you are going to live for after retiring will allow you to work out how much you need to save for after you retire.
The average life expectancy calculation won’t take into consideration your specific circumstances in terms of any illnesses and health conditions.
How much should I save?
Simply use this easy equation:
(age at death – retirement age) x income required per year = how much you should save.
This is a basic equation to calculate a recommended amount to save for retirement. However, there are other factors which may affect your pension savings such as investment growth or decline. If you are unsure, seek help from your financial adviser.
If you have worked in the UK and made National Insurance contributions for 30 years, you will be eligible for the state pension. The age this can be received depends on the year of your birth – this government tool will allow you to check yours. The government may alter the eligibility age in the future. You may wish to work beyond this age, of course.
The state pension only guarantees a basic level of income, so it's important you save for your eventual retirement. With this money, a financial adviser can help you choose either a fixed income paid until the end of your life known as a guaranteed annuity, or a pension drawdown – an investment-based fund that may grow, and that can be withdrawn at any time.
Both of these are offered as part of Retirement Advantage’s Retirement Account, offering the best of both worlds – flexibility and certainty.