The state pension age is set to increase to 68 by 2039, seven years earlier than previously scheduled, as new data reveals a significant drop in healthy life expectancy across the UK. The Treasury confirmed the accelerated timeline, which will affect men more severely, particularly those in the most disadvantaged areas.
Life Expectancy Disparities
Men living in the most deprived areas have a life expectancy of just 73.2 years, compared to 83.6 years for men in affluent regions. The gap highlights stark inequalities in health outcomes. Sarah Coles, head of personal finance at AJ Bell, noted: "At the moment, the average person aged 68 in well-heeled areas is in good health, but the average person in less well-off areas has been unwell for almost two decades."
Healthy Life Expectancy Declines
Healthy life expectancy has fallen across all demographics. In the most deprived areas, it stands at 49.8 years for men and 48.2 years for women. In the least deprived areas, it is 69.2 years for men and 68.5 years for women. This means men in deprived areas spend only 68% of their life in good health, compared to 83% in affluent areas. For women, the figures are 62% and 79%, respectively.
Impact of Earlier State Pension Age
The change from the Department for Work and Pensions (DWP) will see the state pension age rise to 67 over the next two years, then to 68 by 2039. Coles warned: "Unfortunately, for those who are most likely to need the extra support, in the least well-off areas, finding the money to build a safety net is more difficult."
Financial Planning Urgency
Falls in healthy life expectancy underscore the need for long-term financial planning. Coles advised: "One sustainable option is just to take the natural yield from pension investments, so the capital remains intact. This income will vary, so it makes sense to have savings and investments outside your pension you can draw on if needs be. It's worth doing these calculations as soon as possible, to see whether you're currently on track with your pension investments, or whether you need to consider tweaking your contributions."
