Nick Flynn, Retirement Income Director at Canada Life, comments on the potential retirement gap and the financial issues this may cause.

According to new research from Canada Life, people aged 50 and over on average think they will live until around age 80, whether male or female.  The good news is, according to the ONS life expectancy calculator, a male aged 50, will, on average live to age 84, while a women aged 50 will live on average to age 87.

This gap in expectation and reality creates additional pressures on retirement planning and a different type of retirement gap, according to Canada Life, especially given the choices the majority of people currently make around their plans, choosing unsecure retirement income over any type of guarantee.

Nick Flynn, Retirement Income Director at Canada Life explains:

Longevity risk is the one known unknown in retirement planning, but if people are underestimating their life expectancy, this opens up a new retirement gap.

Men and women thought they would live to age 80, despite the stats showing on average men will live for a further four years and women a further seven years. One in four women aged 50 today can expect to enjoy retirement into their 90s, living till age 95.

Full release: New retirement gap looms as people underestimate life expectancy

✉️ Paul Keeble, Canada Life, 07833 085387 / paul.keeble@canadalife.co.uk