Pension warning: Retiring in your 60s is becoming a thing of the past as state pension age rises loom

Britons are being warned to reassess their retirement plans as living to 100 becomes increasingly common.

Recent figures from the Office for National Statistics (ONS) project a significant surge in the UK's elderly population, with those aged 65 and above expected to grow by nearly 40 per cent between 2023 and 2050.

This demographic change is prompting a rethink of traditional retirement timelines and financial planning strategies, as the nation grapples with the implications of extended lifespans.

By 2050, the number of those aged 80 and above is projected to increase by 90 per cent, while the centenarian population is set to triple. This demographic shift is already influencing public sentiment towards longevity.

According to research by Canada Life, nearly half (47 per cent) of UK adults feel positive about the prospect of living to 100. However, concerns about quality of life in advanced age are prevalent, with 74 per cent expressing worries.

The top advantages of a longer life include seeing family grow up (63 per cent) and having more time to make the most of life (45 per cent).

Yet, health issues (75 per cent) and potential loss of independence (56 per cent) remain significant concerns for many Britons contemplating an extended lifespan.

The prospect of living longer is reshaping attitudes towards retirement. Over two-thirds of UK adults believe retiring in our 60s will become obsolete.

Despite acknowledging the need for change, many Britons are not taking practical steps to prepare for extended lifespans. Only half of the UK population have discussed their intentions regarding care and inheritance with family members.

This lack of planning could have significant implications as people navigate longer retirements and potentially increased care needs in later life.

The potential rise in the state pension age to 71 has sparked concerns about the financial implications for future retirees.

The International Longevity Centre's proposal aims to address "widening demographic imbalances" and increasing benefits expenditure.

However, the Institute of Fiscal Studies (IFS) warns that such a move could lead to higher poverty rates among those approaching retirement.

Previous IFS research showed that raising the state pension age from 65 to 66 increased the income poverty rate of 65-year-olds by 15 percentage points.

This highlights the delicate balance policymakers must strike between ensuring the sustainability of the pension system and protecting vulnerable older adults.

As life expectancy increases, individuals may need to reassess their financial planning strategies to accommodate potentially longer periods without access to state pension benefits.

The increasing life expectancy in the UK necessitates a fundamental rethink of retirement planning and financial strategies.

Lindsey Rix-Broom, CEO of Canada Life, emphasised the need for a balanced approach: "The prospect of a longer life should fill us with a sense of optimism. At the same time, we need to be realistic about how we approach improved longevity from both a financial and practical perspective".

This sentiment underscores the importance of early planning and open discussions about later life care and inheritance. As the state pension age potentially rises, individuals may need to consider working longer, diversifying their income sources, and adjusting their savings plans.

Financial professionals and policymakers alike are called upon to support families in navigating these changes, ensuring that extended lifespans translate into opportunities rather than financial burdens.