Why knowing how long you could live is important

You can use Smart Pension’s simple life expectancy calculator to get a statistical estimate of how long you’re likely to live. Naturally any such estimate is not based on your own lifestyle and circumstances. However, it can still be useful in helping you work out how much you should ideally have saved into your pension by the time you retire and how long that money needs to last. For example, if you plan to retire at 65 and your life expectancy is 85, then the money you’ve saved into your pension will need to support you through 20 years of retirement.

Why life expectancy matters when choosing your retirement options

Knowing your estimated life expectancy isn’t just useful for planning how much to save. It also plays an important role in choosing the right retirement options for you. Depending on how long your retirement is expected to last, you may want to consider how you access your pension savings. Whether you’re thinking about taking a lump sum, setting up regular withdrawals or purchasing an annuity for guaranteed income, understanding your life expectancy can guide you toward the best decisions for long-term financial security.

Take control of your future

By factoring in how long your pension savings will need to last, you can feel more confident about the choices you make for your retirement. If you’re not sure how much you’ll need in retirement the Retirement Living Standards can tell you how much you’ll need to live comfortably in retirement. Tools like the life expectancy calculator help take the guesswork out of planning. It’s just one of a series of tools and assets Smart Pension members can use to get on track with their financial future. 

Check out our other tools and calculators here.