Could slowing life expectancy push back state pension age increase?

The data shows that since 2011 there has been a reduction in the rate of improvement in life expectancy. Between 2011 and 2016, only 26 local authorities showed any statistically significant increase in life expectancy for men, and only 17 showed any improvement for women.

This compares to 203 and 128 local authorities respectively showing a significant increase in the equivalent period 10 years earlier.

The ONS says there is ongoing debate about the reasons for the recent findings and whether they represent only a “blip” in the long-term pattern of improvement or a real change of direction.

Helen Morrissey, personal finance specialist at Royal London, commented: “These figures add further fuel to the idea that the increases in longevity we have seen for so many years are beginning to slow down and if this trend continues there will be major implications for policy around state pension age for instance.

“We have seen steep increases in state pension age in recent years and only last year the government accepted the results of a review which suggested bringing forward state pension age to 68 by 2039 – seven years earlier than currently legislated for. If the trends suggested by these figures continue, the government could find itself having to push back a previously announced increase in state pension age.

“The ONS does say that these latest figures are in part affected by flu and cold spells, which is obviously not a solid basis for long term policy making. However, if the figures repeatedly show that something has changed then policy makers need to do more to understand the underlying drivers and their implication for policy making going forward.”