Why Longer Lives Matter
Living longer is usually seen as good news, and rightly so. It can mean more time with family, more years of independence, and more opportunities to travel, contribute, learn and enjoy life. From a financial planning point of view, however, a longer life also brings one of the most important retirement risks: making sure money, income and confidence can last for as long as life does.
Recent figures from the Office for National Statistics help explain why this matters. In 2022 to 2024, UK life expectancy at age 65 was 21.2 further years for females and 18.7 further years for males. The ONS also estimated that the number of people aged 90 and over in the UK reached 625,000 in 2024, while the number of centenarians doubled over 20 years to 16,600. These figures are not a prediction for any one person, and the ONS is clear that period life expectancy cannot perfectly predict how long someone will actually live because future mortality rates may improve or worsen. But they are a useful reminder that retirement planning should not be built around a short horizon.
The challenge is that many people understandably picture a shorter retirement than they may actually experience. Aviva and Age UK research found that nearly a third of retirees in their 70s had already outlived the age they expected to reach when they were in their 50s, while many still did not expect to live beyond 85. If people underestimate longevity, they may make decisions that feel cautious or sensible at the time but later prove more restrictive than they expected.
What Longevity Risk Can Look Like
Longevity risk is not only about “running out of money”. It can show up in quieter, more practical ways. Someone may keep too much in cash for too long and gradually lose spending power to inflation. They may withdraw too much early on, assuming later life will be cheaper. They may avoid spending at all because they are worried about the unknown. They may also overlook the position of a surviving spouse, who often has to run a household on lower income while many fixed costs remain.
Planning Beyond the Average
This is why a retirement plan should not simply ask, “How much do I need at retirement?” A better question is, “How would my plan cope if retirement lasted longer than expected?” That question leads to a more useful conversation about inflation, investment growth, guaranteed income, flexible withdrawals, care needs, tax and family support.
The goal is not to make retirement feel frightening. A well-built plan should do the opposite. It should give people confidence to enjoy their money, knowing that later life has also been thought through. A plan that only says “be careful” is not enough. A better plan says, “Here is what you can afford, here is what we are protecting against, and here is what we will review if things change.”
Longevity is deeply personal. Health, family history, lifestyle, wealth and personal choices all matter. But nobody knows the exact number of years they need to fund. That uncertainty is precisely why planning matters.
A longer life should be something to welcome, not something to fear financially. The purpose of planning is to make sure that if life gives you more years, your money gives you more choices.
How We Plan for this With Our Clients
For our existing Howard Wright clients, this is already built into the way we plan. We look carefully at sustainable income not just to average life expectancy, but beyond it, so your plan has room for the unexpected as well as the years you hope to enjoy. We also review this regularly with you, so we can check whether things remain on track and make sensible adjustments if your circumstances, objectives or the wider financial picture change.
If you know someone who may benefit from this type of advice, please feel free to share this article with them. A thoughtful retirement plan can make a real difference, and we are always happy to help people understand whether their own plans are as robust as they need to be.
Disclaimer: This article contains information from sources believed to be reliable but no guarantee, warranty, or representation, express or implied, is given as to its accuracy or completeness. Howard Wright Ltd does not undertake any obligation to update or revise any future statements. Past performance is not a reliable indicator of future results. Investments can go down as well as up and actual results could differ materially from those anticipated. This article is for information purposes only and has no regard to the specific investment objectives, financial situation or particular needs of any person as such, the information contained in this article is not intended to constitute, and should not be construed as, investment or financial advice. Appropriate personalised advice should be taken before entering into any transactions. No responsibility can be accepted for any loss arising from action taken or refrained from based on this publication. Howard Wright Ltd is Authorised and regulated by the Financial Conduct Authority.