Analysis of ONS data reveals that from 2020-2023 the number of men aged 90 and over grew by 8%, from just over 170,000 to just over 184,000, while the number of women aged 90 plus rose from 361,000 to over 368,000. Additionally, the total number of people aged 65 and over in England and Wales increased by nearly 500,000 between 2020 and 2023, a growth of 4% and they now account for 19% of the overall population.
Despite many living longer in retirement, planning retirement income is not a priority for the majority, with only 9% of over-50s saying they have a written plan when it comes to their retirement. In contrast, over a quarter, (26%) state they had no intention of creating a plan while 10% intent to create a plan in the future.
Pete Cowell, Head of Annuities at Standard Life, comments: “Data from the ONS reveals that more people are living longer in retirement. For many, this will require careful management of pension savings so that they last throughout retirement, giving people the certainty they will be able to meet their needs. This doesn’t need to be a one and done approach, and throughout the course of a long retirement, it may be better to regularly review their approach to check this is still working for them.”
Despite the rising population age, people are not confident about the long-term resilience of their retirement plans, and research from Phoenix Insights found that more than two-in-five people in the UK are not confident they will have enough savings to meet their future goals in later life.
Patrick Thomson, Head of Research Analysis and Policy at Phoenix Insights, Phoenix Group’s longevity think tank, comments: “We have record numbers of people living to their 90s and beyond, but longer lives do not always mean better lives for many. Huge numbers of over-60s face financial difficulty when they leave work, and an increasing state pension age doesn’t automatically mean people are able to remain in work and continue to earn and save.
“Having a plan for a retirement that could span over three decades is critical and the sooner people start to plug the gaps in savings the better. Phoenix Insights research found over a quarter of UK adults know little or nothing about pensions5, so overcoming the knowledge gap is a good first step.”
Pete Cowell concludes: “When thinking about retirement income, it is important to take time to identify essential costs such as housing or possible care requirements, and making sure these are covered by a guaranteed income source, such as the State Pension or a Defined Benefit pension. For those who want greater certainty or want to meet any income shortfalls, an annuity is designed to provide comfort and certainty for your retirement income, with various options available to tailor your plan to your needs.”
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