People aged over 50 are putting their retirement plans at risk due to underestimating their life expectancy, according to a study from Standard Life.

It found that 80 per cent of over-50s were underestimating their life expectancy and therefore potentially storing up later life financial planning challenges.

According to the Office for National Statistics (ONS), an average 66 year old man can expect to life to 85, while a woman the same age would live to 88 on average.

Despite the increase in life expectancy over the past few decades, the vast majority of over-50s were underestimating their potential longevity, with just 10 per cent of men and 6 per cent of women correctly identifying average life expectancy.

Standard Life noted that there will also be people who live well beyond average life expectancy, with government data showing there are more than 600,000 people aged 90 or over.

Furthermore, according to the ONS, a 66 year old man has a one in 10 chance of living to 96, while a woman the same age has the same chance of living to 98.

The research showed that the risk of living for longer than expected was being compounded by a lack of preparedness, with 35 per cent of over-50s admitting to not having planned their income in retirement.

Additionally, just 14 per cent of people who had made plans had taken the length of their retirement into account.

Although the majority of people were not considering life expectancy in their retirement income plans, 99 per cent of over-50s said income security was a top retirement priority.

Other factors, including certainty of income (96 per cent), the ability to access cash (95 per cent), and tax efficiency (93 per cent) also ranked highly.

“Planning an income that lasts throughout retirement remains one of the biggest challenges people face,” said Standard Life head of annuities, Pete Cowell.

“Without a realistic understanding of how long retirement might be, it’s easy for retirement plans to fall short.

“Taking the time to assess income needs, understand spending habits, and exploring options that can combine certainty with flexibility can make a real difference to people’s confidence in later life financial planning.

“A guaranteed income for life offers the certainty that many people are seeking, with annuity rates providing an annual income of £7,510 in 2025.

“Used alongside other retirement income strategies, lifetime annuities can help ensure essential needs are covered, providing stability and peace of mind whatever the future holds.”

Standard Life Centre for the Future of Retirement director, Catherine Foot, added: “Our ageing population is reshaping what later life looks like in the UK, and while longer lives are one of the modern world’s greatest achievements, we as a society have not yet responded in ways that truly help people make the most of this opportunity.

“There is an under saving crisis in the UK, and if we don’t act now, millions of people will reach retirement unable to afford the standard of living they expect.

“People need better information, clearer guidance, and stronger systems to be better protected and to help make confident choices that support financial security and wellbeing across a longer lifespan.”

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