Life Trust: Retirement costs £413,000

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Life Trust: Retirement costs £413,000

Thu 3rd Jul 2008

Retirement costs a typical household £413,000 and a person living alone £326,700, according to figures from financial services firm Life Trust released today (3rd July).

The 2008 Cost of Retirement report warns people to consider increases in longevity and inflation when financing their retirements, with life expectancy of 85 for men and 88 for women expected to rise.

A centenarian would need £708,500.

Life Trust, which concentrates on issues raised by increasing longevity, based its findings on a predicted long-term inflation rate of 2.3 per cent - but if inflation remains at today's level, people reaching the age of 100 would need £1 million on average.

If inflation hits 4.6 per cent, a 100-year-old would need £1.3 million.

Retirement costs were found to peak at the age of 92.

Andy Briscoe, Life Trust chief executive officer, said there were "huge financial implications" over longer living and higher inflation.

The number of people in final salary pensions has fallen by one million, Office for National Statistics figures have shown.

The Telegraph reported that the number of open occupational pension schemes dropped by almost 4,000 from 2006, with the total number of schemes falling by over 5,300.

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