New figures from the Office for National Statistics (ONS) estimate there were 581,400 people aged 90 and over in mid-2025, up 3% on the previous year and more than 16% higher than a decade ago. The number of people aged 100 and over has risen to 15,172, more than a fifth higher than in 2015, while the number aged 105 and over has jumped by a third in just a year.
Maike Currie, VP Personal Finance at PensionBee, comments: “The growth in centenarians marks a remarkable shift in British longevity. When King George V introduced the tradition of sending congratulatory telegrams to centenarians in 1917, he wrote to just 24 people. Today, reaching 100 has become sufficiently common that the tradition has evolved into a dedicated royal operation.
“Longer lives are something to celebrate, but they are also rewriting the rules of retirement. Britain has shifted away from defined benefit workplace pensions, where employers carried much of the investment and longevity risk, towards defined contribution pensions, where individuals are responsible for how much they save, where their pension is invested and ensuring it lasts throughout retirement. Living longer means our money has to work harder for longer too.”
Five ways to prepare your pension for a longer life
1.Plan for a longer retirement than previous generations
Many people still assume retirement will last 15 or 20 years. Increasingly, it could last 30 years or more. The latest ONS figures show Britain is becoming a nation of centenarians, with more than 15,000 people now aged 100 or over and the number of people aged 90 and over rising by more than 16% over the past decade. Not everyone will live to 100, but many more people will spend three decades in retirement than previous generations.
Rather than planning around average life expectancy, stress-test your finances for the possibility of living into your nineties or beyond. Running out of money is becoming one of the biggest financial risks in retirement.
2. Think carefully about how you'll turn your pension into retirement income
Building a pension is only half the challenge. A longer retirement means thinking carefully about how you’ll generate an income that lasts. Some retirees choose flexible drawdown to keep their pension invested, while others value the certainty of an annuity. An increasing number are taking a ‘flex then fix’ approach - using drawdown in the early years before buying an annuity later when guaranteed income becomes more important.
Whichever route you choose, remember that inflation can reduce your spending power over time. The right solution will depend on your circumstances and, for many people, a combination of drawdown and an annuity may provide the best balance of flexibility and security.
3. Review your pension regularly
Don’t assume your pension is taking care of itself. Reviewing it regularly can help you understand whether you're saving enough and whether you're on track for the retirement you want. PensionBee’s Pension Calculator can estimate how your pension could grow based on your current savings and contributions, showing whether you’re on track and how increasing your contributions today could improve your retirement income. Even small increases made early can make a meaningful difference over time thanks to compound growth.
4. Consider a phased or semi-retirement
Retirement doesn't have to happen overnight. Many people are choosing to reduce their hours gradually, continue consulting or freelance, or move into part-time work before stopping completely. Continuing to earn an income while drawing less from your pension can help your retirement savings last longer and gives you the opportunity to ease into retirement rather than making an abrupt transition.
5. Make the most of your pension while you're working
The earlier you start saving, the longer your money has to grow. Taking full advantage of employer contributions, increasing contributions when you can and making use of pension tax relief can all help build a larger retirement pot.
If you have several old workplace pensions, consolidating eligible pots into one place can also make it easier to keep track of your savings and plan confidently for retirement.
Maike Currie added: “Living to 100 was once exceptional. Increasingly, it’s becoming part of the retirement landscape that millions of people need to plan for. The biggest financial risk today isn’t simply market volatility, it’s underestimating how long retirement could last. The good news is that we have more control than ever before. Saving consistently, investing for the long term and making the most of the pension system can all help ensure our money lasts as long as we do.”
|
