Pensions and living longer
While this is good news, the longer you live, the more money you need to fund your lifestyle in retirement. This has had a big effect on pensions, both state and private.
The income paid out to today's pensioners by the state, is funded by those who are working now. As the proportion of people over state pension age - currently 60 for women and 65 for men - grows, the more expensive it gets.
To help counteract this, the government has raised the state retirement ages. Firstly they will be equalised by increasing the retirement age for women from 60 to 65 between 2010 to 2020. Then it will rise gradually to 68 for both men and women between 2024 and 2046.
State pensions
You can see how this might affect you with The Pension Service's state pension age calculator or phone 0845 3000 168.The average life expectancy (aged 50 today) is 87 for women and 84 for men.
Private pensions
Increasing life expectancy has also had a major effect on the amount of income paid out by private pension schemes. Because the money saved up by individuals will have to last longer, you'll need to build up a larger pot of money to provide for your retirement, or work longer.
It's therefore important to think ahead about how you can make the most of your potential income. The Retirement Calculator can help you see your expected income based on your current plans and explore options to boost your retirement income.
