There is a significant rise in the number of people living into their 90s, with over half a million now reaching this age according to recent ONS data, but 67 per cent of over-50s lack a retirement income plan.
The number of people over 90 in England and Wales grew by nearly 20,000 from 2020 to 2023, a 3.7 per cent increase.
Men aged 90 and over climbed from just over 170,000 to 184,000 between 2020 and 2023, while women aged 90 and over went from 361,000 to 368,000. Furthermore, the population of England and Wales over 65 increased by around 500,000, making almost 19 per cent of the overall population.
Meanwhile, according to Standard Life research, around 67 per cent of adults over 50 lack a plan for creating and managing their retirement income, despite the fact that more people are retiring later in life.
Additionally, of the over-50s, only 9 per cent have a written plan, 26 per cent don’t intend to make one, and 10 per cent intend to do so in the future.
Standard Life head of annuities Pete Cowell says: “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 life4.
Phoenix Insights head of research analysis and policy Patrick Thomson says: “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.”
Cowell adds: “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.”