There has been a fall in the ‘healthy’ life expectancy over the past decade according to new data from the Office of National Statistics.
New figures show that ‘healthy’ life expectancy figures are lagging the state pension age, which could lead to rising numbers people leaving the workforce, and having to draw on pension savings from an earlier age.
The latest ONS figures suggest this problem is getting worse in England and Wales for both men and women., and for women only in Northern Ireland (with men’s ‘healthy’ life expectancy rising in the region). The ONS does not publish data from Scotland on this issue.
In 2020 to 2022, the total healthy life expectancy at birth was highest in England — at 62.4 years for men and 62.7 years for women. It was lowest in Wales, at 61.1 years for men, 60.3 years for women in 2020-22.
In most of these cases (with the exception of men in Northern Ireland) this is lower than comparable figures for the period between 2011 and 2013.
The figures show that the largest decrease in healthy life expectancy for men in England was in the North-East (20.3 months) and the only increase in London (6.9 months) between these two data sets.
For women, all nine regions had a decrease in healthy life expectancy, with the largest in the East Midlands (31.8 months).
Pension experts say that these figures will put further pressure on people’s pensions, with ill-health forcing many out of the workforce, which could mean accessing retirement savings early to cover day-to-day living expenses.
Hargreaves Lansdown head of retirement analysis Helen Mirrissey says: “Healthy life expectancy is on the slide, piling pressure on not only our own pension planning but the state pension too.
“Healthy life expectancy was just 62.4 years for a man in England and slightly higher at 62.7 for women. In Wales it was lower again. With state pension age currently pegged at 66 and set to go higher in the coming years there is a widening gap between how long we can reasonably expect to work and when we will collect our state pension.”
She adds: “This throws up all kinds of questions for the future direction of state pension age. The recent review into whether the step up to age 68 should be escalated concluded that the timetable should stay as it is for now, but with a burgeoning older population pushing up the cost, we can’t rule out further changes in future.
“This demonstrates the need for an overarching review of the state pension to make sure it remains on a sustainable footing long-term and gives people certainty about what they will receive and when so they can plan.”
Morrissey says these figures should be taken into account when looking at pension planning. While there has been much focus on how increased longevity means people need to save more, there has been less attention paid to the fact that many people use these savings to bridge the gap between work and collecting the state pension – and the fact that these numbers could rise with state pension age rising and ‘healthy’ lifespans decreasing.
She adds: “We are expecting the introduction of the Auto-Enrolment Extension Bill in the near future, which will help more people to build bigger pensions by allowing auto-enrolment to begin at age 18 and allowing contributions from the first pound. However, there is more that needs to be done to help people prepare better for their retirement.”
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