More than two-fifths (42 per cent) of people aged 50 and over are facing a retirement savings shortfall of at least a decade, research from Fidelity International, in partnership with the National Innovation Centre for Ageing (NICA), has revealed. 

The report, The Longevity Revolution: Preparing for a New Reality, stressed the need for an "urgent rethink" of how people prepare for longer lives, given the growing gap between rising life expectancy and financial preparedness.

Drawing on global research across 13 markets and over 11,800 participants aged 50+, the report found that, when comparing how long people expected their retirement savings to last against the average life expectancy in their location, globally, 42 per cent are under-planning by 10 years or more, while in the UK this dips slightly to 35 per cent.

This is a challenge that is set to get worse as life expectancy continues to rise, as when measured against a potential 100-year lifespan, four in five (81 per cent) people aged 50+ are underprepared by at least a decade, with significant variations by country.

In the UK, seven in ten (74 per cent) are unprepared.

Yet despite these gaps in preparation, Fidelity also found a sense of optimism about retirement, as just over two-thirds (68 per cent) of retirees described their outlook as positive, compared to just over half (56 per cent) of those yet to retire, suggesting that confidence often grows once people transition into later life. 

This trend was also seen in the UK, where 74 per cent of retirees describe their outlook as positive, compared to just 56 per cent of pre-retirees.

Reflecting this increased optimism, the research also revealed changing attitudes toward work and ageing, as 70 per cent of pre-retirees said they are likely to work at least in some capacity (voluntary or paid) in their retirement, primarily to stay mentally and physically active (38 per cent) rather than as a financial necessity (26 per cent).

The importance of planning was also highlighted, as Fidelity found that those who had taken steps to plan for retirement, such as preparing a budget or identifying potential income streams, felt significantly more ready for life after work.

This was true not only in terms of financial stability, but also for physical health, emotional wellbeing, and social connectivity, which Fidelity highlighted as a demonstration of how preparation serves as the foundation not only for long-term financial security but also for the maintenance of critical determinants of holistic wellbeing in later life.

Fidelity International global head of platform solutions, Stuart Warner, said: “People are living longer than ever, but too many are preparing for retirements experienced by their parents and grandparents.

"This mismatch between life expectancy and savings horizons risks leaving many underprepared. With the right planning, longer lives can be a positive reality, but it requires a new mindset and earlier action.

"When finances are secure, people can invest in their health, maintain social connections, and approach retirement with confidence. When they’re not, the entire structure is weakened.”

“A longer life should be something to look forward to, not fear.  We have an opportunity to create the conditions for people to live longer, more fulfilling retirements.

"Organisations and policymakers who embrace longevity wisely will not only support individuals in achieving security and purpose, but also establish a society that is wealthier, healthier and more cohesive than the one before it.”

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