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SuperGuide is grateful to Optimum Pensions for allowing us to share their LifeSpan Calculator with you.
This calculator helps you estimate how long you might live, based on the latest Life Tables from the Australian Bureau of Statistics (ABS) and the Australian Government Actuary.
However, these government estimates of potential lifespans are based on population averages for men and women. To give you a better idea of how long you might live, the LifeSpan Calculator also allows you to add key details about your health, lifestyle and marital status.
The aim of the calculator is to provide a more personalised estimate of how many years you might expect to live in retirement and how long your retirement income may need to last. It does this by taking into account your attitude to risk and desired level of confidence that your retirement income will last the distance.
For example, a 65-year-old woman today can expect to live to 89 on average but individual differences can make a big impact on your life expectancy.
Take Jennifer. Using the calculator, she keys in her age (65), marital status (single) and preferred retirement age (67). She also provides lifestyle information that indicates she is healthy and active with no medical conditions. According to the calculator:
- If she wants to be 95% confident that her savings will last until she dies, she needs to plan to live for 38 years in retirement until age 105. There is a 5% chance she will live longer than 105.
- If she wants to be 75% confident that her savings will last until she dies, she needs to plan to live for 32 years in retirement until age 99. There is a 25% chance she will live longer than 99.
- If she wants to be 50% confident that her savings will last until she dies, she needs to plan to live for 27 years in retirement until age 94. There is still a 50% chance she will live longer than 94.
Try out the calculator yourself below and download your results.
You can then use your results to help with your retirement income planning, starting with the MoneySmart Retirement Planner or one of our retirement calculators: