People living in neighbouring postal districts can have dramatically different life expectancy after retirement, according to new research by WTW, which has analysed the longevity expectations of occupational pension scheme members in every postal district in the country.
The findings, from WTW’s latest Postcode Mortality Model, show that the 10 postal districts with the highest life expectancy in retirement are found in the South of England, East Anglia and West Midlands. In the highest district, Broadstone in Poole (BH18 postal district), retirees are expected to live to 88.2 years on average. The 10 postal districts with the lowest life expectancy in retirement are found in the East of England, South Yorkshire and Glasgow. In the lowest district, the G34 Easterhouse area of Glasgow, retirees are expected to live to 83.5 years on average.
The study, which analyses mortality rates among millions of people receiving private sector occupational pensions, illustrates how geography does not dictate life expectancy but rather how factors including lifestyle and wealth do. Those retiring in the B93 Solihull district of Birmingham are expected to enjoy an average lifespan of 88.1 years whereas their neighbours ten miles away in the B35 Castle Vale district are expected to enjoy an average lifespan of only 84.3 years, a difference of 3.8 years. Similarly, those retiring in Central Hull (HU2) are expected to live to 83.7 years on average whereas their neighbours in nearby North Ferriby (HU14) are expected to live to 87.4 years, some 3.7 years longer.
The difference between men and women can make the comparisons even starker, with the difference in life expectancy between a woman in B93 and a man in B35 being 6.6 years. The same comparison for HU2 and HU14 in Hull is a difference of 6.4 years. According to WTW’s model, lifestyle, education, gender and wealth are among the most important factors in estimating life expectancy. Factors such as exercising regularly, eating healthily, having a university degree, saving regularly and owning a home all correlate with higher life expectancy, and these factors can vary widely even between adjoining geographical areas.
Stephen Caine, Senior Mortality Consultant at WTW said: “That there are big differences in life expectancy in different areas of the country comes as no great surprise. But these findings also highlight the fact that geography is itself not the key issue. More significant in determining life expectancy are the economic and lifestyle factors which can vary by as much in neighbouring areas as they can across the country. Those who have enjoyed well-paid jobs and a relatively comfortable and healthy life will on average live longer than those who have not. This is as true when looking at two suburbs of Birmingham as is it when the comparing Easterhouse in Glasgow to Sandbanks in Poole. When you also factor in that women tend to live longer than men, the average retirement for two people living only ten miles apart can be dramatically different.
“Postcode analysis of this kind, when used in tandem with other social and economic factors, is a powerful predictor of life expectancy and therefore a valuable tool for many areas of the financial services industry. For example, those running a defined benefit pension scheme can use our postcode mortality analysis in understanding the life expectancy of their own membership, and therefore will be better able to assess how much money needs to be put aside now to pay pensions in future.”
Top 10 UK postal districts for life expectancy from age 65
Lowest 10 UK postal districts for life expectancy from age 65
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