The latest expectations of life expectancy published by the ONS reflect the growing future improvements in mortality. Over a quarter (26.3%) of girls and nearly a fifth (18.3%) of boys born in 2049 in the UK are expected to live to at least 100 years of age, an increase from 19.1% of girls and 12.0% of boys born in 2024.
Cohort life expectancy at birth in the UK is projected to reach 92.4 years for girls and 89.6 years for boys born in 2049, an increase of 2.2 years and 2.6 years, respectively from 2024.
David Brooks, Head of Policy at leading independent financial services consultancy Broadstone, commented:
“As life expectancy continues to rise, the UK faces a significant demographic challenge that will place increasing pressure on public finances and wider policymaking. People will spend longer in retirement, often needing to draw an income for decades, requiring both larger later-life savings and inevitably increasing the cost for the State of providing retirement benefits.
“This creates difficult questions for policymakers, employers and the pension industry around how retirement can be funded sustainably in the long term. Dr Suzy Morrissey Review on behalf of the DWP is already gathering evidence as to whether increases to the age at which people can claim the State Pension should be accelerated.
“An ageing population combined with lower birth rates means there are proportionally fewer working-age people supporting those in retirement, which risks placing a greater tax burden on younger generations while stretching healthcare, social care and pension systems further.
“For individuals, increasing longevity also raises the risk of people underestimating how much they will need in retirement and running out of money later in life. This underlines the importance of long-term savings, realistic retirement planning and ensuring pension systems are designed to provide sustainable incomes for an increasingly longer retirement journey.”
