I hope I die before I get old
Posted on Apr 18, 2018
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We know that, for many people, planning for their retirement isn’t
In the report, funded by the IFS Retirement Savings Consortium and the Economic and Social Research Council, IFS researchers draw on a large household data set to investigate individual survival expectations and their relation to health, wealth and other individual circumstances.
The results showed that individuals from a range of ages underestimate their chances of survival to ages 75, 80 and 85, on average.
Those people in their 50s and 60s underestimate their chances of survival to age 75 by around 20 percentage points and to 85 by around
Strangely, we seem to overestimate our chances of surviving to ages 90, 95 and above once we hit our late 70s and 80s.
While the pattern of ‘pessimism’ about surviving through their 50s, 60s and 70s is common across many groups of individuals, some groups are more ‘pessimistic’ about their survival chances than others. Perhaps understandably, widows and widowers show much greater pessimism than others at age 60.
Underestimation of chances of surviving through their 50s, 60s and 70s may mean that individuals save less during working life, and spend more in the earlier years of retirement, than is reasonable given their actual survival chances.
David Sturrock, a Research Economist at IFS and an author of the report, said: “As individuals
The truth is none of us has a crystal ball
With an increasing number of us living up to 30 years post-retirement