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Looking ahead: Average life expectancy for people aged 66 is 85 for men and 88 for women<\/p>\n
Standard Life points out that as when you assess any average figure, there will be those who fall well outside the norm, and when it comes to life expectancy the most recent government study shows there are over 600,000 people aged 90 and over.<\/p>\n
‘There is a one in 10 chance of living to 96 years old for a 66-year-old man, while a woman of the same age has the same chance of living to 98,’ it adds.<\/p>\n
The pension firm also questioned people about what they intend to live on in old age, and found 35 per cent of over-50s haven\u2019t planned their income, and only 14 per cent of those who have planned ahead took the possible length of their retirement into account.<\/p>\n
More than 90 per cent cite income security, certainty about the amount they will get, ability to access cash if necessary, and tax efficiency as top priorities.<\/p>\n
Generous final salary pension schemes, which offer a guaranteed income for life, are now closed to new entrants and being phased out except in the public sector.<\/p>\n
Defined contribution pensions, which are stingier and where savers bear the investment risk, now prevail in the private sector.<\/p>\n
If you have a defined contribution pot, most people keep the fund they have built up invested and live off the income in retirement. But a recovery in interest rates<\/a> means annuities, which provide a guaranteed income, have become more popular again.<\/p>\n Read our guides to living on your pension investments<\/a> in retirement, and buying an annuity and combining it with income drawdown.<\/a><\/p>\n What to consider when planning how to make your pension savings last<\/p>\n Standard Life offers the following tips.<\/p>\n 1. Think carefully about your retirement age: Continuing to work into your 60s or for as long as you feel motivated and able to do so is incredibly valuable from a financial perspective.<\/p>\n Not only does it give you the option to keep topping up your savings, it means you\u2019re likely to start accessing your pension later.\u00a0<\/p>\n In simple terms, the longer you leave the money untouched, the higher the income you can safely withdraw from it each year.<\/p>\n 2. Decide how you want to retire: Retirement is no longer a ‘hard stop’.\u00a0<\/p>\n More people are choosing to phase down gradually, often through part time work. Think about what kind of transition suits you, then build a plan for your income, lifestyle, and spending needs.<\/p>\n Consider how you\u2019ll access your pension savings, either via drawdown, lump sums, an annuity, or a combination, and how these will work for your needs in retirement.<\/p>\n 3. Review your withdrawal strategy regularly: If you\u2019re already retired, it\u2019s important to check in on your withdrawal rate to ensure your income remains sustainable over a retirement that may last 30 years or even longer.\u00a0<\/p>\n Life changes, markets move, and your spending may shift so your strategy should evolve too.<\/p>\n 4. Balance certainty with flexibility: Taking time to assess your income needs and spending habits helps you choose a retirement income mix that suits you.\u00a0<\/p>\n Combining flexible income (such as drawdown) with options that offer more certainty can give you both stability and control.<\/p>\n Lifetime annuities offer income certainty, and if you annuitise later in retirement, you may secure a higher rate.<\/p>\n How to sort out your pension if you fear it’s falling short <\/p>\n 1) If you are worried about whether you will have saved enough,\u00a0investigate your existing pensions.\u00a0Broadly speaking, you need to ask schemes the following questions.<\/p>\n – The current fund value.<\/p>\n – The current transfer value – because there might be a penalty to move.<\/p>\n – Whether the pension is in a final salary or defined contribution scheme.\u00a0Defined contribution pensions take contributions from both employer and employee and invest them to provide a pot of money at retirement.\u00a0<\/p>\n Unless you work in the public sector, they have now mostly replaced more generous gold-plated\u00a0defined benefit\u00a0– career average or final salary – pensions, which provide a guaranteed income after retirement until you die.\u00a0<\/p>\n Defined contribution pensions are stingier and savers bear the investment risk, rather than employers.\u00a0<\/p>\n – If there are any guarantees – for instance, a guaranteed annuity rate – and if you would lose them if you moved the fund.<\/p>\n – The pension projection at retirement age. You can use a pension calculator to see if you will have enough – these are widely available online.<\/p>\n 2) You should add the forecast figures to what you anticipate getting in state pension, which is currently \u00a3230.25 a week or nearly \u00a312,000 a year if you qualify for the full new rate.\u00a0Get a state pension forecast here.<\/a><\/p>\n 3) If you are tempted to merge your old pensions, read our guide first to ensure you won’t be penalised<\/a>.<\/p>\n![](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/09\/podcast.jpg\")
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