More than a third (35%) of UK adults aged 50+ are facing a retirement savings shortfall of at least a decade, new research has found.
The study from Fidelity International, in partnership with the National Innovation Centre for Ageing (NICA), discovered that by 2050, an estimated 3.67m people globally are expected to live to 100.
When measured against a potential 100-year lifespan, seven in ten (74%) are unprepared for retirement.
“People are living longer than ever, but too many are preparing for retirements experienced by their parents and grandparents,” said Stuart Warner, global head of platform solutions at Fidelity International.
The Investing and Saving Alliance (TISA) recently highlighted the impact of higher life expectancy on retirement savings, concerned that raising the State Pension Age (SPA) will risk leaving millions of future retirees financial exposed.
TISA warns higher SPA could leave retirees financially exposed
The Alliance warned that current projections are outdated and that any automatic adjustment mechanisms need to be designed to account for unprecedented events.
Warner added: “When finances are secure, people can invest in their health, maintain social connections and approach retirement with confidence. When they’re not, the entire structure is weakened.
“A longer life should be something to look forward to, not fear. We have an opportunity to create conditions for people to live longer, more fulfilling retirements.
“Organisations and policymakers who embrace longevity wisely will not only support individuals in achieving security and purpose, but also establish a society that is wealthier, healthier and more cohesive.”
