People don't save enough for retirement because they live longer than they think they will, research finds
Those in their 50s and 60s underestimate chances of survival to age 75 by around 20 percentage points and to 85 by five to 10 percentage points, study finds
People live longer than they think they will, potentially harming their ability to save adequately for their retirement, new research has found.
It is increasingly important to plan for the future because recently introduced pension freedoms have given people more control over their retirement funds, the Institute for Fiscal Studies said.
People in their 50s and 60s underestimate their chances of survival to age 75 by around 20 percentage points and to 85 by around five to 10 percentage points, the study found. For example, men born in the 1940s who were interviewed at age 65 reported a 65 per cent chance of making it to age 75, whereas the official estimate was 83 per cent. For women, the equivalent figures were 65 per cent and 89 per cent.
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