According to Office for National Statistics data published this morning, there is now a record number of people aged over 90 in England and Wales, up by 2.1% in 2022 to 550,835 people.
The number of centenarians (people reaching 100) has more than doubled in the past 20 years, the ONS said, with 15,120 in England and Wales in 2022.
Becky O’Connor, Director of Public Affairs at PensionBee, said: “The age any of us will live to is a great unknown, but many people are living longer. This has big implications for pensions and retirement planning.
“The growing burden on the state pension from an ageing population is a significant social issue, which over time, is likely to lead to the system becoming less generous.
“Meanwhile, the prospect of us living longer also means that there is even more reason to contribute as much as possible to our private pensions. Someone with a £100,000 private pension and the full state pension could maintain a basic living standard on about £13,000 a year if they live to 100, based on the Pensions and Lifetime Savings Association’s Retirement Living Standards guide.
“Of course, it’s incredibly hard to guess how long you might need retirement income to last for. It’s worth knowing that anything left within a defined contribution pension when you die will go to whoever is nominated on your ‘expression of wishes’ or nominated beneficiaries form, so it’s important this is kept up to date for all your pensions, including ones from previous employment.”
Table 1: Pension income possible with a £100,000 pot at 67
|Possible annual income including state pension
Source: PensionBee, 11 January 2024. Assumes full state pension and no lump sum. Investment growth 5% a year, annual charge 0.7%. 83 is the life expectancy for UK females
PensionBee has a calculator that can predict whether your pension will last until you are 100, based on the current size of your pot, your contributions and your desired retirement income. To decide how much retirement income you think you might want or need, check the Retirement Living Standards from the Pensions and Lifetime Savings Association.