Aegon’s research, “The Second 50,” addresses the changing dynamics of life expectancy, with 25% of children born today expected to live to nearly 100. This shift impacts traditional retirement planning, emphasising the need for financial plans that extend to at least age 99. Clients often underestimate their longevity, using personal and family health history to predict their lifespan. However, Aegon challenges them to plan for various scenarios, ensuring financial stability for a longer life.
As people live and work longer, with a growing number of workers over 65, retirement planning becomes more complex. Aegon’s survey shows that only 27% of people plan a “clean break” from work, with others continuing for financial or personal reasons. Aegon suggests aiming for an annual income of 70% of pre-retirement earnings to ensure comfort in retirement. Given the diversity of retirement goals and lifestyles, seeking financial advice early is crucial for creating a sustainable and adaptable plan.
Read more from Chartered Financial Planner Paul McCabe in Scotsman Money here.
Editor’s Notes
Published in Scotsman Money 30th September 2024.
The information within this content is for information only and should not be looked upon as advice or recommendation. Clients should seek appropriate guidance from their financial planner.
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