'One in two worried about financing longevity'

Professional Adviser, 19th June 2008, by David Carr.

'Just over half of Britons (54pc) said they would be worried about their ability to finance their retirement if they were to live for 10 years longer than today's average life span of 82 years, according to research from Life Trust Insurance Plc.

With a person aged 50 today having a one in two (47pc) chance of reaching 90 and a one in ten (10pc) chance of reaching 100, the company asserted that rising longevity could result in many people needing to rethink their retirement finances.

When faced with the possibility of living ten years longer than the average, many of those polled said that they would have to adapt their finances and working lives accordingly.

Just over a fifth (22pc) would take advantage of a longer life to keep working because they enjoyed it, while a further 28pc claimed they would need to keep working simply to ensure they had financial stability.

Andy Briscoe, CEO, Life Trust, said: "We're all living longer than ever before, which should be seen as an opportunity not a burden. But we continue to see a real disconnect between people's perception of retirement, in terms of length and aspirations, and the money they have set aside to pay for it. People need to really consider what they want to achieve in these years and put plans in place to ensure they can afford it."'