Latest ONS figures show a rise in life expectancy in 2021-23, starting to reverse the decline that has been seen recently due to the high mortality rates seen during the coronavirus pandemic.
The data shows life expectancy now at age 65 is 18.6 years for males and 21.1 years for females in England and Wales, against pre-coronavirus highs of 18.8 years for males and 21.2 years for females in 2017-19.
But the rise is not at the level of the strong improvement which was seen between 1980 and 2010.
Commenting on the figures, Stephen Lowe, group communications director at retirement specialist Just Group, said: “Given the severity of the pandemic, we were always likely to see an improvement in life expectancy from the darkest days of 2020. It’s important to remember these period life expectancy figures are based on past death rates and assume these will remain constant into the future, which probably underplays the likely gains from healthcare improvements.
“It serves as a reminder that people nearing State Pension age should be planning to spend several decades in retirement. Half of us can expect to live beyond average life expectancy. The chances of living into your late 80s and 90s is probably a lot higher than most people think, particularly for women, so it is important to ask yourself how financially prepared you are for a long life.”
Helen Morrissey, head of retirement analysis, Hargreaves Lansdown, said that the fact many people would be looking forward to a long retirement was something to be celebrated but also required planning for and regular checking of pensions savings.
But, she added: “It does throw up challenges for government in terms of state pension. As more of us live for longer, this will keep pushing up the state pension bill. Increasing state pension age is one option used to mitigate these costs but given that many people will be unable to work into their late sixties and longer there is only so far these increases can go. With this in mind, the state pension needs to form a key part of the government’s review of the pension system to ensure it remains sustainable for the long term and give people confidence to plan for their future in the knowledge of what they will get from the state and when.”
