24 Apr 2014
Pensions minister Steve Webb has suggested that anyone over 65 should be given advice on how long they are likely to live in order to help them manage their savings.
Research into mortality figures has been growing in recent years, and reasonable estimates have now be made by the Office for National Statistics (ONS) on an average individual’s life expectancy given their location.
The Government is keen to point out that there will always be a margin for error and that these figures are just a guide.
If a person is aged 65, a recent ONS chart serves as a guide to over how many more years they will need to spread their savings. These estimates range from 17 years for men and 19.5 years for women in Scotland, to 19 years for men and 21.5 years for women in the south east of England.
This advice comes as part of the Government’s pension changes, mentioned in the Chancellor’s Budget Speech last month.