Can you afford to live to 100?

We discuss not just life expectancy, but quality of life. How can work adjust for those who are having to work longer? And we talk about the importance of knowing where all of your pensions are, and how you might be able to find any lost pension pots.

Use the player icons above to listen on your favourite podcast app, or read the full transcript below.

This podcast isn’t personal advice. If you’re unsure what’s right for you, seek financial advice. Pension and tax rules can change, and benefits depend on personal circumstances.

Full podcast episode transcript

Helen

Hello and welcome to the Switch Your Money On podcast from Hargreaves Lansdown. I’m Helen Morrissey, Head of Retirement Analysis.

Clare

And I'm Clare Stinton, Senior Personal Finance Analyst. Thank you for joining us. In today's episode, we're putting the spotlight on centenarians and how to fund the 100 year life, with a particular focus on what this means for our retirements, because here in the UK, the number of people living above 100 is at an all-time high, meaning King Charles is busier than ever, sending out birthday messages for everyone turning 100.

Helen

Most notably is our great national treasure, Sir David Attenborough, who recently turned 100. I think it was just a couple of weeks ago, Clare.

Clare

So happy birthday to Sir David.

Helen

Absolutely.

Clare

In actual fact, Helen, the oldest living person, lives here in the UK and is approaching her 117th birthday later this summer. Helen, do you know which UK country has the highest rate of centenarians?

Helen

Well, that's an interesting one. So, I know that there's a gap between people living longer in England and Wales compared to Scotland and Northern Ireland. So it's going to be either England or Wales.

Clare

5050 chance.

Helen

Yeah. 5050 chance and do you know what, I'm going to go with Wales.

Clare

That's correct. So it's 25.9 per 100,000 people. So the rate actually of people living to above 100 has increased across all four countries. But it is highest in Wales. Though the UK hasn't made it on the blue zones list yet. Those are the places in the world where some of the oldest and healthiest people call home. People in the UK are living longer. And actually, data projections released last year by the ONS showed that nearly 1 in 5 baby girls born last year will live to at least 100 and around 1 in 10 baby boys. Now, I think we all wonder how long we’ll live, but we don't give it too much detailed thought, particularly when it comes to financial planning. Our own mortality is uncomfortable for many of us to think too long and too hard about. So if anything, we tend to see that people underestimate how long they may live.

Helen

Absolutely. And I think a lot of it stems from the fact that if you ask someone how long they thought they were going to live, then it's kind of quite common to maybe look at grandparents and to peg it to how long they've lived for, I think. However, as you say, that could well be a really big underestimate. The number of centenarians that is people aged 100 and above has grown massively in recent years. The latest data shows that there were 16,600 centenarians in the UK in 2024. That has doubled from 8,300 in 2004.

Clare

Wow. And also there are more people living to above age 90, so that's increased by 54% in that same time period. So we've gone from a population of around 407,000 in 2004 to 625,000 in 2024. Living longer is a huge positive. Many Brits would love to see children and grandchildren grow older, but it does have real consequences for our wider retirement planning, doesn't it, Helen?

Helen

Yeah, it really does have massive implications for how we manage our money and prepare for our retirements. So if you think about it, if you retire and your 60s and then you live to age 100, then you need to make sure that you've got enough saved to last 30 years or more. If that's not possible, then you need to think about whether you need to make some big changes, such as retiring later than you might have thought, for instance, or maybe moving into part time work. It could potentially have a really, really big impact.

Clare

Let's just pull out what you've said that because it is pretty significant. So if people are retiring at 65 and live to the grand old age of 100, they will spend over 35 years in retirement. And that means that the gap between the number of years people spend earning an income and the number of years they spend in retirement is shrinking. The reality is, if you finish school at 18 and retire at 65, then you may spend about 45 years working. But if you go to university, it shrinks slightly and it's probably closer to 40 years. And then those retiring at 55, they could spend a similar time working as they do retired. So us living longer doesn't just have consequences for our private workplace pension value, but it's also having a huge impact on the state pension, isn't it?

Helen

Yeah, I think if you look at it like that, it's really, really stark, isn't it? The idea that, you know, if you were to go to university and then want to retire at 55, your number of years working versus retirement is much smaller. Yeah, absolutely. But, you know, increasing longevity is a major factor in the rise in state pension age as well. So state pension age is moving up to age 67 over the next couple of years. And then under the current rules as they stand, the shift to age 68 is going to start in the 2040s. But we could see that brought forward.

Clare

Increasing the age at which we become eligible for the state pension is a way to manage the rising costs. We've got an aging population. People living longer means they are drawing the state pension for longer, and that all adds to the public bill. And actually, that's a big reason why we're seeing increasing headlines about the sustainability of the triple lock, which is that mechanism which guarantees to raise the state pension by the highest earnings growth, inflation, or 2.5%. So most recently, the state pension rose by 4.8% and in 2025 by 4.1%. Now again, this is adding additional cost, especially when more pensioners are receiving it and for longer periods of time. So isn't there a review of the state pension currently ongoing?

Helen

Yes there is. So as you say, there's a lot to consider as part of that review. And I think that there is a chance that we could see further change to the state pension age as a result. So as I said earlier, we could see that current timetable up to age 68 brought forward, potentially. We could also see plans to increase state pension age beyond that to 69, 70 and even beyond.

Clare

Aside from moving eligibility to age 70 or beyond being a likely unpopular move, especially for those approaching the current threshold, who may feel that the goalposts that they've been planning towards are being shifted. What are the other challenges and considerations here?

Helen

Yes. So state pension forms the bedrock of people's retirement income. There are very few people, when you think about it, who aren't going to rely on it, at least to some extent. The challenge is that if you keep increasing state pension age, then people could get to a point where their health means that they're unable to continue working, at least in the job that they have been doing up until that point. If this happens before state pension age, then they've potentially got a huge gap in their income.

Clare

That's a really interesting point. So a major consideration here is what happens to our health once we hit our mid 60s and beyond. The latest healthy life expectancy data shows that it currently hovers in the early 60s. Though there is a big difference is up and down the country. So some really startling differences depending on your postcode. Those in Richmond on Thames have the highest healthy life expectancy of around 70 years, for both men and women. Blackpool is the area with the lowest healthy life expectancy, at around 50.9 years for men and 51.8 years for women. That's nearly 20 years difference. Just depending on where you live in the country. And actually, that says to me that there's a lot of people who are perhaps already struggling to keep working into their 60s, let alone going up to their 70s. Now, that means we have this really difficult scenario whereby people may need to retire early, and as a consequence of that, they have less time to save into their pension. That also means they'll benefit from fewer employer contributions because they leave the workforce earlier. Yet they still have that same task of building a good income, although they will potentially be relying on that pot for even longer. So it's a really tricky balancing act. Helen, what do you think needs to happen to address such a major issue?

Helen

Yeah, you're right, it is a very tricky balancing act, isn't it? So, I think longer term we need to look at what can be done to help people remain in the workplace for longer. And I think this will help people not only who might be struggling with their own health, but also those people that might have caring responsibilities, whether it's for partners, parents or grandchildren, for instance. So, you know, that could be more part time work, flexible working or retraining to do a different kind of job to what they've already done. What I would say is that one big positive is that we've had auto enrolment, which means that we're going to see more people spending more of their time contributing to a workplace pension than maybe we have done in the past. And that means that they will have grown bigger pots. And so that is something. But clearly there is more that needs to be done.

Clare

So, what about the people here and now? So, for those people listening, thinking, how can I build my part to ensure that I have more choices come retirement if I live longer or if I have to retire early? Or perhaps they've recently used the pension calculator to find out what they're on track to receive and have realized that they're a little way off target.

What can they do?

Helen

So, I mean, first of all, I'd say we have a pensions calculator tool on our website. I tend to find pension calculators really, really useful. So, if you haven't checked your projection lately, it might be worth having a look at that. It's free to use and I think it's very, very useful. I think it shows the huge kind of importance of doing what you can to kind of build that good retirement income. So, once you've had a look at what figures you put into that pension calculator, you can see what you're on track for. And then above and beyond that, you make the most of auto enrolment. Boost your contributions every time you get a pay rise or a new job, for instance. What can you do to maybe maximize that employer contribution? It's all important, and it can make a huge difference to those small kind of changes over time can really have an impact. What I would also say is keep track of pensions from previous employers is something that people don't think about enough. It's easy to lose track of a pension if you've gone on to move job or move house. But if you don't track it down, you could risk missing out on thousands of pounds that could be used towards your retirement income and really kind of transform your prospect. So, what I would say is, if you think that you've lost track of a pension from a previous employer, put in a call to the government's pension tracing service, or you can go online now. All you need is the name of your employer or the pension provider. Now the service can't tell you if you've got a pension with them, but they can give you the contact details so you can get in contact with them and find out. So, they will help you to track it down. And you could be getting a nice surprise there.

Clare

And of course, Helen, the sooner that you track down that pension, the sooner you can get that money put to work and working harder for you and your retirement. Gretel is actually another free search engine that can help you find lost financial accounts. So, pensions, but also bank accounts, child trust funds, etc. You input your details and if it doesn't locate something for you immediately, it will add new providers over days, weeks and it will rerun that scan every two weeks. And then they'll get in touch by email if they do find something. And one big reason actually, for tracking down lost pension pots, other than to claim the money that is yours for your retirement, is because it is important to keep an eye on how your pensions are performing, isn't it?

Helen

Absolutely. So having that overarching view of what you've got pension wise is vital.

You know, it really helps you to make the right decisions for your retirement long term. So, once you've kind of got that overarching view of what you've got, you can then take that time to have a think about what you want your retirement lifestyle to look like. And once you've got an idea of that, you know, you can then offer an idea of what that might cost. Now, what I would say is that can change markedly from person to person. One person might want their retirement for the travel, for instance, theatre trips, or the people might want something a little bit more modest. So, it's really important to have a think about what retirement means for you, because then you can start putting a cost on it. Now, Clare, you've already mentioned kind of making use of these online pension calculators. I think if you're really good insight into whether you're on track or not. What I would also say is, as you're approaching your retirement years, you also need to give a bit of thought into how you want to take that pension as an income, you know, do you want the certainty of an annuity, for instance, or the flexibility of income drawdown or even a mixture of both? If you're going to go down that annuity route, then you're going to need to factor in issues such as whether you want to go for a level annuity that doesn't change, for instance, or maybe an inflation one that increases your income every year. Choosing what age you annuitize is also important as you will get higher incomes as you age. If you've developed any health conditions, you might also qualify for an enhanced annuity. So again there’s lots of big decisions that need to be made.

Clare

An annuity is where you hand over either part or all of your pension to an insurance provider in exchange for that guaranteed income for the rest of your life. But, Helen, you have just touched upon the fact that there are other ways that you can take income from your pension and you can mix and match, can't you? You don't have to just take one route.

Helen

Absolutely. So, you may choose to combine annuities and income drawdown and annuities in slices as you age. So, you have your essentials effectively covered by an annuity that guaranteed income, while you also then retain the flexibility that comes with income drawdown. If you were to work with an advisor that they will do loads of work in assessing how robust your income is long term and whether you risk potentially winning lower funds. If you do live for longer, you towards that, you know, 100 years of age, for instance. This can help you decide whether you need to take more or less income to stay on track. They'll also take into account issues such as whether you might need care later on in life. As we live for longer, it is something that you need to consider as it can potentially take big chunks out of your savings, so it is important to be aware of that and to make some preparations.

Clare

You're right Helen. Living longer doesn't necessarily mean living longer healthily. Long term care is something we may not want to think about, but we do need to prepare for.

Helen

Absolutely. So it can be a really big expense that could have a big impact on your strategy. So, for instance, if you were looking to gift assets away in preparation for pensions becoming part of your estate for inheritance tax purposes, this is happening from April 2027, then you do need to consider whether the gifts that you're making are sustainable long term. You don't want to find yourself in a position where you've given away too much, too soon, and then you've been left struggling because you might need long term care later on. But what I would say that way isn't just an issue for long term care, by the way. As more people live for longer than they do, need to make sure that they've got sufficient assets to see them through in case they do hit that magic 100. What I would also say, though, is that you also need to balance that need of being prudent with, you know, making sure that you are still enjoying your life as well.

Clare

Absolutely. And this is a particularly important point for women, because women are both more likely to live to 100, currently making up over 80% of centenarians in the UK. And women are also more likely to end up in care. Female care home residents over 65 outnumber men, so in 2021, for every 23 female care residents, there were ten male residents.

Helen

That's a very startling stat to finish on Clare.

Clare

And that is where we are finishing. So that's all for this week. But before we go, we should remind you this was recorded on the 12th of May, 2026 and all information was correct at the time of recording. Next week on Anna McDonald and Matt Britzman will be back with an investment episode.

Helen

Nothing in this podcast is personal advice. If you're unsure about what's right for you and your circumstances, you should seek advice. Pension Wise is an impartial guidance service backed by the government. Those over the age of 50 are able to book a 1 to 1 appointment to learn more about retirement options. It's a great second opinion and it is a really underused service.

Clare

Pension rules can change and benefits depend on circumstances, money in a personal or company pension can't normally be accessed until 55. But this is rising to 57 from 2028.

Helen

So, all that's left is for us to thank our producer, Elizabeth Hotson.

Clare

And thank you all very much for tuning in. We'll be back again soon. Bye.

Helen

Bye.