Is the present day extended life span worth saving for?

Planning the financial aspects of retirement should include a five-year life span increase.

A popular way of estimating one’s life span is to compare it with the ages of deceased grandparents, even although average life spans for those over 50 years of age have since increased by 11 years. Nowadays, the average life expectancy is 87 years – but people are still forced to retire at 65, giving them another 22 years to eke out their savings and pensions.

This uncomfortable funding gap is estimated at some £80,000, taking into account that those who’ve become expats to save money have often been forced to spend it all on private hospital charges or private health insurance. One tenth of elderly Brits who took part in a recent survey had no idea where the extra cash would come from and 28 per cent feared they’d be destitute long before they die.

Another scary thought for those to whom it might apply is that one in ten old people will actually last until they’re 100 years old or slightly more. Basically, no-one really wants to last that long due to the obvious consequences of extended longevity. As a result, more and more of those approaching what used to be retirement age are upping sticks and moving overseas as expats, starting SMEs aimed at keeping their brains working as well as providing more cash.

Bankers and financiers as well as IFAs do their best to persuade those in this situation that ‘investment’ is the answer to a cash shortfall in extreme age, but a huge number of those who’ve been there and done that aren’t impressed with the results. Even if they haven’t lost the lot to yet another commission-hungry salesman and his offshore buddies, political uncertainty and currency manipulation can cut pensions in half in the blink of an eye.

For those elderly expats in good health, starting a new business can be done at any age and in any country, although bureaucracy can take its toll on the nerves as well as the wallet. At the very least, an SME can be challenging and even exciting, especially if it’s in a favourite expat destination, and at best it can result in a longer, far more rewarding life span.