The life expectancy of both men and women in England has risen for the first time in years according to official government figures. The Office for National Statistics (ONS) said the life expectancy for women in 2019 was now at 83.6 years, a four month increase compared to 2018. The increase for men in England was three months taking their life expectancy to 79.9 years.
The increase is the biggest jump since the start of the decade. The increase in longevity began to slow down in 2011 and hit a plateau in 2013. Cuts to the NHS and austerity are blamed for the slow down in life expectancy increase. In 2012 and 2015 the life expectancy for women actually dropped.
The increase in life expectancy rates in 2019 were for all age levels. Women who had reached the age of 65 could expect to live another 21.5 years according to the ONS. Three months more than what was expected in 2018. Men at the age of 65 could expect to live another 19.1 years compared to the 18.8 years reported in 2018.
This is great for people who are healthy and enjoy an active life, it also means that people who retiree have a lot of years to enjoy and do plenty of ‘new stuff’. However, this is not good for the government and has huge implications on pensions. The increase in longevity has resulted in some people calling for a review of the age you can start to receive the state pension.
Steve Webb, the former minister for pensions, now a consultant with actuaries LCP has cautioned against reading too much into the data stating that a cold winter, a warm summer or viruses can have a big impact on it. The current and rapid spread of the Corona Virus could easily change the data which the ONS said were ‘provisional’.
“An improvement in life expectancy data is very good news, though we should be wary of reading too much into a single year’s figures,” Webb said.
“It is also true that these averages conceal a great deal of variation between different parts of the country and different groups. Assuming these new figures represent a return to the upward trend of life expectancy, this should put an end to insurance companies being able to ‘bank’ profits where their assumptions about improving life expectancy has not been met.
“From the point of view of the individual saver, these figures are a reminder that the average man or woman at 65 can expect to have to manage their pension pot for a good two decades. For all the talk of ‘working til we drop’, in reality retirements for many people are going to be longer than in the past and we need to think hard about helping people make good choices with their money not just at retirement but all the way through retirement,” said Webb.
The figures are also likely to open up debate about austerity and its impact on society and the aging population. Only last month a landmark review by Sir Michael Marmot showed how the life expectancy figures had stalled for the first time in 100 years and had even reversed for the most deprived women in society. The review found that not only were lifespans stalling, but more people were living longer with poor health.
Here at Kickass Retirement, the main take from this is:
- Life expectancy is showing signs of rising again
- The state pension age may get pushed back
- People have been living longer with poor health
Basically, people are living longer and that means YOU will live longer, you will have plenty of time on your hands and you may need to think more about the financial implications of living longer with either good or poor health.
You simply cannot become complacent and you will need to take your retirement in your hands. Savings can dwindle and while your health is sound, now is the time to do something which will earn you a nice monthly income without having to bust a gut.
Keep an eye on Kickass Retirement’s posts and reports because we will be able to help you with all of that.
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