£240k extra needed in pension pot for 100-year-olds

Someone living until they are 100-years-old could need an extra £240,000 in their pension pot to give them a comfortable retirement, analysis by interactive investor has shown.

These extra funds were calculated when compared to someone who lives until they are 84-years-old, which is the current life expectancy for men at age 65, according to Office for National Statistics (ONS) figures.

The calculations also found that someone retiring and drawing enough for a moderate retirement could need an extra £112,000 pension wealth if they are to live to 100, compared to someone who lives until 84.

Data for the research was based on the 2022 PLSA retirement living standards which found that single pensioners need a private pension income of £15,383 for a moderate retirement and £32,882 for a comfortable retirement, assuming they have a full state pension.

interactive investor calculations are based on someone retiring at 66 and using income drawdown to take this income from their pension pot.

Head of pensions and savings at interactive investor, Alice Guy, said: “The average life expectancy for a 65-year-old is currently 84 for men and 87 for women meaning that men will need their pension pot to last 18 years on average, while women will need their pension three years longer, 21 years on average. But these figures are only averages. In fact, there are currently over 600,000 people aged over 90 in the UK, and this figure is expected to grow in the future.

“Many of us assume that we’re going to spend less as we get older, but that’s not necessarily true. Most pensioners want to enjoy holidays and eating out in retirement, and it can be expensive to maintain your home in retirement with maintenance and insurance costs soaring in the last few years.

“It’s important to sit down and work out how much you need for retirement as everyone’s priorities are different. The PLSA figures for a comfortable retirement include three weeks abroad each year, and changing cars every five years, whereas their figures for a moderate retirement include two weeks abroad and a UK weekend away, plus changing cars every 10 years.

“Younger people have an even greater life expectancy on average than those currently in retirement. Modern advances in medicine and healthcare mean that life expectancies are gradually increasing and the average life expectancy for babies born today is expected to be 87 for boys and 90 for girls meaning that young people will need to save more on average for a comfortable retirement than current retirees.”

    Share Story:

Recent Stories

Helping landlords make their cash work harder
MoneyAge Editor, Adam Cadle, talks to Family Building Society BDMs, Arif Kara and Nathan Waller, about the resilient BTL market, the wide variety of landlords that Family Building Society caters for, and how niche products like an Offset mortgage can help improve cashflow.

An outlook on the BTL market
MoneyAge Editor, Adam Cadle, talks to Landbay senior regional account manager, Alex Witham, about current market sentiment within the BTL space and Landbay’s success in this area

Empowering advisers: A decade of education in Later Life Lending with Air Academy
Michael Griffiths is joined by chairman of Air Club and former founder and CEO of Air, Stuart Wilson, and head of the Air Academy, Daniel Holden, to look back on a decade of business focused learning at the Air Academy.


Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.