Latest figures from the Office of National Statistics suggest that a 65 year old male can expect to live for a further 18.5 years and a woman for 20.9 years. But how long they’ll need an income for is just part of the picture your scheme members should consider when planning for retirement.
There’s their lifestyle and health in retirement to consider. Do they need more early on in their retirement when they will arguably be at their most active physically, or should they hold some back in case they need to cover care costs in later life?
For some, it won’t be just them in the equation. Will they need to support others from their retirement savings, for example a partner, children or elderly relatives?
And with the Department of Work and Pensions saying 1.2million over 65 year olds remain in employment, what will ‘retirement’ mean for your scheme members in reality?
With so much uncertainty, it’s easy to see how Step 2 may feel overwhelming for your scheme members.