Contemporary new challenges have been thrown up for retirement planning following the publication of latest ONS statistics immediately displaying that the variety of centenarians residing in England and Wales in 2021 climbed to the very best ever quantity ever recorded.
There have been 13,924 centenarians in 2021, a 24.5% enhance from a decade earlier in 2011.
However the determine was a 127-fold enhance on the 110 centenarians document a century in the past in 1921.
There was a complete of 11,288 feminine and a pair of,636 male centenarians in England and Wales.
The newest predictions counsel nearly one in 5 females born in 2021 can anticipate to stay till age 100 together with greater than 14% of boys.
Which means rising strain on the state pension in addition to having an infinite impression on individuals’s pension planning.
In 2010, the federal government forecast the variety of centenarians residing within the UK would attain 21,900 by 2020, and 37,600 by 2025.
Megan Rimmer, chartered monetary planner at Quilter, mentioned: “Whereas immediately’s figures do present a marked enhance, the federal government’s predictions vastly overestimated common life expectancy, illustrating simply how troublesome it’s to precisely predict how lengthy you’ll stay.”
Life expectancy can differ vastly primarily based on occasions outdoors of our management, she mentioned. For instance, it tends to extend in bursts equivalent to medical breakthroughs, however might be hindered by unpredictable occasions such because the Covid-19 pandemic.
This implies everybody ought to plan their retirement across the very life like risk of residing to 100, she added.
Helen Morrissey, head of retirement evaluation at Hargreaves Lansdown mentioned: “The prospect of residing greater than 30 years in retirement means we have to resist the truth that we have to save rather more into our pensions than many individuals suppose.”
She mentioned a evaluate of the state pension and the triple lock’s function inside it’s wanted to provide pensioners extra certainty on what they’ll anticipate to obtain and when to assist them with their retirement planning.