Our mortality is not often a topic we enjoy exploring. However, our life expectancy is an essential factor in our analysis of our teachers’ pension, when we take retirement and what other arrangements we might need to put in place.
The job and when we retire
There is a truism that taking retirement prolongs your life. However, like all commonly believed facts, the statistical evidence to support this is sketchy. The earlier you retire the longer you are likely to live, or so we have grown to believe.
However, the truth about teachers and life expectancy is a little different than thought too. Being in a profession that put them in an above average socio-economic group could mean that they have 18 years of life expectancy beyond retirement at 65. (BBC, 2012)
Therefore, when planning your retirement and your use of your teachers’ pension, you need to consider the impact of retiring early and the influence of the higher than average socio-economic lifestyle enjoyed.
Life expectancy is significantly affected by our postcode. Where people live can be the difference of twenty years. As with our profession, which may put teachers in a higher socio-economic group, the affluence of the area in which we live can impact your life expectancy (Agewatch, 2019).
The Office for National Statistics (ONS) report that the best places to live are East Dorset, Chiltern in Buckinghamshire, South Cambridgeshire, Harrow, Kensington and Chelsea. The average life expectancy for men is 82 and for women is 85. However, in Glasgow, you will live to just 72 as a man and 78 for women according to statistics. Glasgow has a significant level of deprivation in comparison to other Scottish cities (ONS).
Finally, you may have noted throughout that women on average seem to live longer than men. The ONS report that data from 2017 show women (82.9) live over three years longer on average than men (79.2). Not only is this significant for the time that your pension needs to sustain you, but also the uneasy fact that you may outlive your partner and need to meet your lifestyle needs from a single financial source.
The content in this article was correct on 23rd September 2019. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on pensions for teachers and non-teachers. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.