Rising life expectancy adds urgency to saving
The importance of saving for old age has been highlighted by stats that show life expectancy in the UK continues to increase.
A boy born today can expect to live for an average of nearly 79 years and a girl until she is nearly 83, according to figures released by the Office of National Statistics.
Life expectancy at birth has risen by more than six hours a day over the past 35 years, and there are now more than 710 people who are 105 or older.
“These figures are terrifying, particularly if you are a reluctant pension saver,” said Nick Fitzgerald, of wealth manager Brewin Dolphin.
“How many of us have planned for the future assuming that we will live to 105?
“These figures highlight the need to save and budget carefully. Savers need to plan for a longer retirement than they think, and they need to take the best advice possible to ensure that their money works for them both at retirement and before.
“Being a nation of penniless 105-year-olds is in nobody’s interests.”
Rising life expectancy also means that the Queen will be busier. British citizens receive cards on their 100th, 105th and every subsequent birthday from Her Majesty and from the government.
Work and pensions secretary Iain Duncan Smith touted recent pensions reforms as being part of the government’s efforts to help the growing number of people who have longer retirements.
But he said it was good news that there were so many people who reached three figures.
“It is a privilege to send these cards and help the hundreds of people each year celebrate their special birthdays,” he said.
“Our ageing society can only be a cause for celebration, and our reforms to pensions are ensuring the system can stay strong as the number of people in Britain hitting 100 ‘not out’ increases.”