The UK’s ageing population is growing faster than ever, and experts warn that the state pension age could rise beyond 70 to manage soaring costs. With over 16,000 Britons now aged 100 or older, the government faces a financial balancing act to sustain future pension payments. Retirement analysts urge workers to plan early, track lost pensions, and maximise employer contributions to safeguard long-term financial security.
Britain’s Ageing Population Puts Pressure on the State Pension
New data from the Office for National Statistics (ONS) has revealed that more Britons than ever are living past 100, prompting urgent warnings that the state pension age may soon rise beyond 70.
The figures show that the number of centenarians has doubled in the past two decades, reaching 16,600 in 2024. Meanwhile, 625,000 people aged 90 or older now live in the UK — a staggering 54% increase since 2004.
While the rise in longevity is a positive sign of improved health and living standards, experts warn it poses a serious financial challenge for the government as pension costs soar.
Experts Warn of State Pension Reforms
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, praised longer lifespans as “a huge positive” but warned that it “comes with major financial consequences.”
She explained that the government faces growing pressure to make the pension system sustainable. One option under review is the triple lock, which guarantees that pensions rise each year by the highest of inflation, wage growth, or 2.5%.
“Potential options to mitigate the bill could include reform of the triple lock mechanism,” Morrissey said. “We could also see the timetable for state pension age rises accelerate even further, potentially pushing the pension age into the 70s.”
Why You Should Start Planning Your Retirement Early
With the possibility of working longer becoming a reality, early retirement planning has never been more critical.
Those aiming to retire at 65 may now need to fund 35 years or more of retirement income. Morrissey recommends small but consistent steps to boost savings, such as increasing pension contributions whenever you receive a pay rise or change jobs.
Workers are also encouraged to maximise employer contributions, especially where companies offer matched payments, as this can significantly increase long-term pension growth.
Don’t Forget Lost or Old Workplace Pensions
Many people have multiple small pension pots from different jobs and may not realise how valuable they are. The National Pension Tracing Day, held on October 26, urges savers to use the Government’s Pension Tracing Service to locate forgotten funds.
“You could find a pension worth several thousand pounds that you had forgotten about,” Morrissey said. Pension consolidation can make managing retirement savings easier — though savers should be cautious of exit fees or losing valuable benefits such as guaranteed annuity rates.
Inflation and Longevity: The New Retirement Challenge
As people live longer, inflation becomes an even bigger threat. A fixed pension income may not stretch as far in 20 or 30 years. Those buying annuities may want to consider inflation-linked options, while individuals using income drawdownmust manage withdrawals carefully to avoid running out of money later in life.
“Those using income drawdown will need to ensure that they don’t take out too much too early,” Morrissey warned.
With Britons living longer than ever, the state pension age rising to 70 looks increasingly likely. While this presents financial challenges for the government, it’s also a wake-up call for individuals to take control of their retirement plansnow.
Early preparation, smart pension management, and a clear understanding of your financial future can make the difference between a secure and a struggling retirement.