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Welcome to RL360's

dedicated financial adviser website

For financial advisers only

Not to be distributed to, or relied on by, retail clients

How long are we all going to live?

If we knew the answer to this question, then planning for the future would be much more straightforward needless to say we dont.

What we do know is that people are living longer today than at any other time, and with continued advancements in medical science and better social and economic environments, this trend of increasing life expectancy is predicted to continue across the globe.

For example, people living in any one of the top 10 countries listed below from the CIA world fact book have a good chance of living beyond 80 years of age.

Average life expectancy (yrs)
1 Monaco 89.52
2 Japan 84.74
3 Singapore 84.68
4 Macau 84.51
5 San Marino 83.24
6 Iceland 82.97
7 Hong Kong 82.86
8 Andorra 82.72
9 Switzerland 82.50
10 Guernsey 82.47

In fact, out of the 224 countries listed, you have to get to Saudi Arabia, ranked 108 before the average life expectancy falls below a respectable 75 years.

So for many, it looks like we are going to live well into our old age which is good news, but this does present the challenge of funding a comfortable lifestyle in retirement.

So when do your clients want to retire?

Some will be happy to work into old age giving them more time to build a nice retirement nest egg. However what happens if their health fails forcing them to retire early. As mentioned above we are all living longer but with that longevity comes a host of potential health issues.

On the other hand there will be many whose idea of an early retirement is top of their wish list however, are they being realistic about the amount of money they will need to save to make this a reality.

What plans do they have for their retirement?

If they expect luxury holidays and fine dining then they are going to need to save accordingly. As the saying goes - you can’t live a champagne lifestyle on lemonade wages.

Have they even started saving towards retirement yet – if not why not?

It may come as quite a shock that by delaying the savings process by just a few years can really dampen the idea of an early retirement. The longer its left, the more they will need to save especially if they are determined to enjoy the finer things in life.

If they have started then great however, when was the last time they reviewed their investments?

What was an appropriate strategy five years ago may not necessarily be appropriate today. Reviewing investments on a regular basis is a key component of a successful retirement strategy.

Ultimately are they on track to reach their retirement goals?

If not then RL360 may be able to help. Quantum, our regular savings product could be the perfect solution to help boost their retirement pot.

The following example further highlights the effects of delay in retirement planning using a Quantum.

Let’s look at a 45 year old male earning a salary after tax of $70,000 per year who wishes to retire at the age of 65 on half of his final salary. If his salary reached $100,000 by retirement, he would expect to retire on an annual income of $50,000.

To achieve this level of income, the client would need to save $1,389 each month into a Quantum over 20 years (total premiums paid $333,360).

Delaying this results in a dramatic increase in required monthly premium as shown below:

Delayed by
Monthly premium (USD$)
Total premiums paid (USD$)
1 year $1,500 $342,000
2 years $1,630 $352,080
3 years $1,786 $364,344
4 years $1,964 $377,088
5 years $2,167 $390,060
6 years $2,416 $405,888
7 years $2,691 $419,796
8 years $3,013 $433,872
9 years $3,397 $448,404
10 years $3,859 $463,080

Important notes

The figures shown in the above table are calculated assuming a growth rate of 7.50% per year and are inclusive of all Quantum product charges. They also assume that withdrawals of $50,000 each year are made for a period of 20 years from retirement.