The Office for National Statistics has today (25th September) published the latest data on UK life expectancy.
Highlights:
• Life expectancy at 65 remained unchanged, at 18.6 years for males and 20.9 years for females
• Average life expectancy at birth did not improve, staying at 79.2 years for men and 82.9 years for women
• Record number of people aged 90 and over in 2017 at 579,776, up from 571,245 in 2016 and 417,777 in 2007
Tom Selby, senior analyst at investment platform AJ Bell, comments:
"The decline in life expectancy improvements in recent years, with the latest data showing no improvement at all across the UK and a small decline in Scotland, will undoubtedly cause concern across the political divide and identifying the cause of the shift should now become a priority for all parties.
“However, we have seen decades of improving life expectancy and despite this falter in the figures, savers still need to prepare for a 100-year life, and the financial implications that brings. Last year saw the largest number of people aged over 90, which presents major challenges for Government, regulators, the pensions industry and most importantly individuals as they look to plan for retirement.
“For the Government, the primary issues continues to centre on the provision of healthcare and the state pension. Ironically reports suggest the Treasury is preparing to cut back pension savings incentives in order to fund its promise of an extra £20billion of funding to the NHS – arguably solving one problem in the short-term by creating another in the long-term.
“With more people expected to draw their state pension for longer, the question of how to ensure continued sustainability remains at the forefront of policymakers’ minds.
“The triple-lock, which links the state pension to the highest of average earnings, inflation or 2.5%, looks like an incredibly generous guarantee in this context and seems certain to be scaled back at some point in the near future.
“If the recent slowdown in life expectancy improvements proves to be just a blip then future generations may be staring down the barrel of a state pension age of 70 or even older.
“With no guarantees of what people will receive from the state or when they will get it, the onus is squarely on the shoulders of individuals to ensure they set enough aside while at work to pay for their needs in retirement.”
