Underestimating lifespan puts retirement plans at risk

04 March 2026

People aged 50-plus may be underestimating their life expectancy, with consequences for their retirement plans. That’s the conclusion of research commissioned by Standard Life.

A sample of 2,000 UK adults aged 50 and over were asked about average life expectancy. The results show that most people are in the dark on this subject:

• A surprising 80% underestimated life expectancy.

• Just 6% of women and 11% of men identified 88 and 85 as average life expectancy for their genders.

• Only 14% of people who have planned for retirement have taken average life expectancy into account.

These results conflict with people’s retirement priorities, with 99% of over-50s saying that income security is a top priority. The risk is that people may not have taken the steps required to ensure they have enough income for life if they underestimate life expectancy.

Life expectancy statistics in more detail

The life expectancy calculator from the Office for National Statistics (ONS) shows the following results: 

The ONS also provides some data on the likelihood of people living beyond these averages. For example, they say that a 50-year-old female has a 1-in-4 chance of living to 95 years. A 50-year-old male has a 1-in-4 chance of living to 93 years.

Planning for a long retirement

Everyone will make their own decision about the role potential life expectancy plays in their retirement planning. However, it makes sense to understand the average lifespan of someone of a similar age and factor that into choices about retirement saving and pension income products. 

Pete Cowell, Head of Annuities at Standard Life, says: “Planning an income that lasts throughout retirement remains one of the biggest challenges people face. Without a realistic understanding of how long retirement might be, it’s easy for retirement plans to fall short. [It] risks leaving people with income that simply will not go far enough. 

“Taking the time to assess income needs, understand spending habits, and exploring options that can combine certainty with flexibility can make a real difference to people’s confidence in later life financial planning. 

“Used alongside other retirement income strategies, lifetime annuities can help ensure essential needs are covered, providing stability and peace of mind whatever the future holds.” 

Strong annuity rates fuel demand

UK annuity rates are holding at near-record levels, which means more guaranteed income for life with a lifetime annuity. That’s also true for enhanced annuities, which pay even more income on account of health conditions or certain lifestyle choices such as smoking.

If you want an immediate estimate of the lifetime income you can expect from your pension savings, why not use our quick annuity calculator? You can also enter a few more details on our annuity comparison page to get free quotes from leading UK annuity providers.

And remember, Retirement Line’s friendly UK-based Annuity Specialists are here to help. They will explain your options and further explore how much guaranteed income you could achieve from your pension fund, based on the very latest rates. Talk to our team today by calling freephone 0800 652 1316 or request a call back.