Many Danish people underestimate their own life expectancy and should consider a lifelong annuity in retirement to ensure they have an income to last a lifetime, according to Insurance and Pension Denmark.

Figures published by Statistics Denmark reveal that new-born female babies born in 2019/20 can expect to live to 83.6 years, compared to 83.2 for those born in 2018/19. For male babies born in 2019/20, the life expectancy is 79.5 years, compared to 79.3 for those born in 2018/19.

Insurance and Pension Denmark head of analysis, Andreas Østergaard Nielsen, said: “It is really good news that the life expectancy of Danes continues to increase. However, it puts great demands on each of us to save enough for our retirement, so that our money lasts until the day we die.”

An Epinion survey conducted by the association found that two out of three Danes do not think they will live longer than their parents. Østergaard Nielsen said Danes can be “age pessimistic”, with many not aware that they will live longer than previous generations. Therefore, he stressed the importance of arranging personal finances for retirement.

“If you dream of going out and travelling and taking your grandchildren to the zoo, then it is important that your money lasts a lifetime. Therefore, many more should consider lifelong annuity products rather than just having a ratepension [a product that pays out for a set period of time], so that you are financially secured for life with a fixed payment every month.”

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