A state pension “catastrophe” looms as future generations are expected to be in poorer health despite the official retirement age set to be raised in the years ahead.
New data show that healthy life expectancy across the UK has fallen to its lowest level in over a decade, prompting financial experts to warn of looming retirement difficulties for millions of workers.
As it stands, the state pension age for men and women is 66 years old; however, this will rise to 67 for everyone by next year. Once someone crosses this milestone age, they are able to access the state pension and other retirement benefits from the Department for Work and Pensions (DWP).
Increases to the state pension age are based on a variety of factors, including life expectancy, but new figures signal Britons could be at risk of living longer while being unhealthier.
Analysts are warning about a state pension ‘catastrophe’
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According to data uncovered through a Freedom of Information (FoI) request, commissioned by LCP, British men could anticipate living approximately 60.7 years in good general health, representing 77 per cent of their total lifespan between 2022 and 2024.
Women fared slightly better at 60.9 years, though this accounted for just 73 per cent of their lives. These figures represent significant drops compared with the 2019-2021 period, with men losing 1.8 years of healthy life and women experiencing an even steeper decline of 2.5 years.
Despite overall life expectancy showing modest improvements since 2019-2021, the number of years spent in good health has retreated to levels not witnessed since 2011-2013.
England recorded the highest healthy life expectancy at birth among the UK’s constituent nations, with men expected to enjoy 60.9 years and women 61.3 years in good health.
Are you affected by state pension age changes? | GETTY
Projection of the total number of people aged 60-66 and 67-69: UK, 2000 to 2050 | STANDARD LIFE
Scotland fared worst for male healthy life expectancy at 59.1 years, whilst Wales reported the lowest figure for women at just 58.5 years. Total life expectancy currently stands at 83 years for women and 79.1 years for men across the UK.
These declining health statistics arrive as the state pension age prepares to increase. The widening gap between when people can access their state pension and when their health typically begins to deteriorate has sparked concern among retirement specialists.
Speaking to Newspage, Stephen Perkins, the managing director at Norwich-based Yellow Brick Mortgages, painted a bleak picture of what lies ahead for many retirees.
He explained: “With the age at which you can draw a pension looking to go up and the healthy life expectancy going down, a poor retirement looks likely for most.”
Britons are expected to be in poorer health the older they get
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GETTYMr Perkins suggested some workers may adopt a “work til I die” mentality, whilst others might seek to access their pension savings as early as possible to enjoy them while still healthy. He also predicted a rise in equity release schemes as more elderly homeowners find themselves asset-rich but short of cash.
Antonia Medlicott, the founder and managing director at London-based Investing Insiders, warned of an impending “catastrophe” due to widespread pension disengagement.
“Research from Pensions Age shows that one in seven UK adults have never even checked their pension at all,” she noted, adding that Standard Life data indicates 47 per cent of adults cannot estimate their pension pot size.
Nouran Moustafa, the practice principal and independent financial Adviser at Roxton Wealth, urged workers to address their retirement planning immediately rather than postponing it.
She added: “Too many younger workers opt out or delay planning because retirement feels distant, and that behaviour compounds over time. A pension isn’t a ‘later problem’, it’s a lifetime asset.”