Will your pension pot be enough if you live to 100?

Everybody wants to live a long and happy life, and thanks to improvements in diet, lifestyles and healthcare, that’s become much more likely. 

But living longer brings with it one very specific challenge – can we afford it? 

Many of us are retiring in our 60s, or at least wish to do so, so we could conceivably spend more than 30 years in retirement. 

That’s three decades-plus when we’re not on a regular salary and depending on our retirement savings. 

So it’s critical that our pension pots are big enough to cope with the likelihood of living longer. 

New figures from the Office for National Statistics (ONS) show that in 2023, there were nearly 15,000 people aged 100 or older in England and Wales. 

That’s more than double the number recorded in 2002. 

Women currently account for the vast majority of centenarians, with 12,130 females living to 100 or more, compared with just 2,720 men. 

That’s notable for one important reason – women typically have less saved for retirement than men. 

Men and women typically are typically saving similar amounts into their pensions when they start their careers. 

But according to a new study by Royal London, a gap is opening up later on. 

In fact, figures show that women are saving an average of 16% less than men by the time they’re in their 30s, and 43% less by the age of 55. 

That’s not because they don’t think pension saving is important. 

Instead, it’s because women are more likely to take on caring duties, so many will be giving up career opportunities and reducing their hours. 

And this can have a big impact further down the line. 

Clare Moffat, pensions expert at Royal London, commented: “At the point of retirement, women typically only have around £60 saved for every £100 that men have. 

“On average, women live longer and therefore have longer retirements, so rather than less savings, they actually need more money for their retirement than men.” 

So while longer life spans might, on the face of it, be a cause for celebration, it’s clear that we’re storing up big problems for the future unless we act now. 

Steps such as starting your pension saving early on, reviewing your savings every year, and taking advantage of employer matching contributions could pay huge dividends in later life.