The Government may have to revisit its plans for how it will pay for the state pension due to inequalities in life expectancy for different parts of the UK. The latest figures for local areas show huge discrepancies between different regions.
For example, a woman in Kensington and Chelsea will live for almost 13 years longer than a man from Blackpool.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “This shows the difficulties faced by a Government trying to manage state pension costs.
“In a society where the number of centenarians is growing, we are also seeing people who will only claim state pension for a handful of years so increasing state pension age as a means of managing costs will prove a much more difficult choice than it ever was before.
“Healthy life expectancy also needs to be factored into this – not everyone will be able to work into their mid to late 60s. It shows that increasing state pension age is proving to be an increasingly blunt tool.”
The latest life expectancy numbers cover the period from 2020 to 2022, showing a fall in life expectancy compared to the period from 2017 to 2019.
Male life expectancy was highest in Hart, at 83.7 years and lowest in Blackpool, at 73.4 years, a gap of more than a decade.
Life expectancy for women was highest in Kensington and Chelsea at 86.3 years and lowest in Blaenau Gwent at 78.9 years.
Comparing the regions of England, the South East had the highest at 80.1 years while the North East was the lowest, at 77.2 years.
Ms Morrissey added: “State pension forms the backbone of our retirement income, and its long-term sustainability is vital in helping people to plan for their future.
“Knowing what you will receive and when is a critical part of overall pension planning and forms the basis on which you increase your own retirement savings whether that be through a workplace pension or SIPP to get the retirement you want.
“Managing state pension costs is a tricky balancing act for government and we need to see a stable path forward. We have long called for an overarching review of the state pension system to set this path and give people the confidence to plan ahead.”
The state pension age is currently 66 for both men and women, with legislation in place for this to gradually increase to 67 and then to 68.
You can check how much state pension you are on track to receive using the state pension forecast tool on the Government website.
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