This is the fifth article in a nine-part series that summarises findings from Just Retirement Insights 2024, a tracking study conducted by retirement income specialist, Just SA.
Just Retirements Insights gathers respondents’ feedback on the age they expect to live to.
In 2024, individual life expectancy estimates were scattered, with many respondents in the 60 to 70 age group underestimating their life expectancy. This is worrying as in this decade of their lives, many people will need to decide what retirement income solution is best for them and will last their lifetime.
Fundamentally, people are not good at estimating their life expectancy and therefore may plan financially with a flawed view of how long they might live.
A solution is to make sure you consider an appropriate time horizon when planning for retirement. Best practice dictates that we should plan up to age 95 for males and age 100 for females, as statistically there is a good chance of reaching this age for males and females respectively.
These numbers generally don’t change according to your current age. In other words, whether you’re a 60-year-old male or an 80-year-old male, there is a roughly 10% chance you will reach the age of 95.
Next week: As we get older, our health deteriorates – another factor to consider when planning for retirement.
Read the full report here:
PERSONAL FINANCE