Many Swedish retirees may outlive their savings, according to a new report from the Swedish Pensions Agency (Pensionsmyndigheten).
The analysis reveals that people often underestimate their own life expectancy, and this could lead to financial shortfalls in retirement.
Life expectancy
According to the report, women and men turning 66 in 2025 have an average life expectancy of 88.7 and 86.7 years, respectively. However, the median life expectancy is even higher, meaning half of them are likely to live beyond those ages.
One in two women aged 66 today is expected to reach 90. For men, the median life expectancy is 88.5 years. Many savers may not realize this and could withdraw their pensions too quickly, leaving them without sufficient funds later in life.
The warning of Swedish Pensions Agency
“There are never any guarantees at an individual level, but it can be helpful to know that half of your peers are expected to live to the age of 90,” said Erland Ekheden, chief actuary at Pensionsmyndigheten.
The agency urges Swedes to consider longevity when deciding how to draw their occupational pensions. A short-term approach could mean years without a pension in old age.
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