As the population ages, a potential new class of pensioner is rapidly emerging, according to wealth management firm Investment Quorum.

OOPs, or ‘Out Of Pocket Seniors’, will slip into retirement and age long beyond their means, and many may not even see it coming.

Lee Robertson of Investment Quorum, says, ‘Many feel that retirement will be the golden years of their lives, but they may be living off copper! There are, of course, real benefits people will see from living longer than their parents and grandparents, better healthcare and greater independence, but increases in the cost of living and lower returns on pension annuities may conspire to take the gloss off retirement for many.’

And with a typical 35-year-old now having a two in three chance of living to 85, a 50 per cent chance of making it to 90 and more than a one in ten chance of living until 100, Robertson argues that current financial models are no longer appropriate.

‘If we are now, on average, living twice as long as people did 200 years ago then many of the financial models we have adopted, even in the past few decades, are no longer appropriate for a new generation of retirees.

‘The “sticking to work until 65, drawing a works pension and living till your early 70s” model is no longer good enough.’

According to Investment Quorum, specific planning using intelligent assumptions will assist those approaching or planning for retirement.

They should calculate how much capital they will need to fund their retirement income, get rid of high-interest debt and start saving as early as possible, as well as updating their retirement plan as and when their needs change.