Retirement was once seen as a well-earned reward after decades of work, a time of comfort and good health. However, a recent analysis by the Health Foundation reveals a stark reality: healthy life expectancy in the UK has fallen by roughly two years between 2012-14 and 2022-24, dropping below 61 years for both men and women. This is now significantly below the state pension age, meaning millions face years of poor health before they can retire.
Among 21 high-income countries, Britain’s ranking has slumped from 14th to 20th, ahead only of the United States. This decline is not just a statistic; it reflects a growing crisis where the dream of a comfortable retirement is becoming a luxury for the fortunate few. The reasons are multifaceted, but a key driver is relative deprivation and widening inequality.
The Shrinking Window of Healthy Retirement
The link between health and wealth is undeniable. People in lower-income brackets consistently experience shorter, sicker lives. With the state pension age continuing to rise, the gap between when people become too unhealthy to work and when they can claim their pension is widening dangerously. The Tony Blair Institute has even called for abolishing the meagre state pension, leaving millions vulnerable.
Pensioner poverty in Britain remains widespread and far worse than in France and Italy. As Helen McCarthy noted in a recent column, the struggle today is not just about retirement, but about “the right to live a good, meaningful life, and to live it right to the end.” Achieving this will require a renewed fight to ensure no one of pensionable age remains employed out of economic necessity.
The UK Gender Pension Gap
One of the most significant inequalities is the gender pension gap. The UK has one of the highest gaps in the developed world. Women retire with about 37% less private pension income than men. Only 59% of women aged 22 to 59 are saving into a pension, compared with 66% of men.
This gap is set to worsen as Generation X approaches retirement. Without access to defined benefit workplace pension schemes, they are dependent on private savings. Fewer women in paid work means they cannot participate in workplace schemes. Today’s savings gap will translate into a larger pension gap in the 2030s and 2040s.
The Unspoken Burden of Care
Retirement security has always depended on an unspoken assumption: that care would be provided without cost by families. As that settlement unravels, the pressure of care is felt long before retirement. With people living longer, often with many years of poor or declining health, most of us will either provide or need care.
This creates a cycle where caring for elderly parents reduces the ability to save for one’s own retirement. The care crisis is not separate from the pension crisis; they are deeply intertwined. Without systemic reform, the dream of a comfortable retirement will remain out of reach for a growing number of people.
What Can Be Done?
Experts suggest that the only way to mitigate rising inequality is for employers to reinstate defined benefit workplace pension schemes with government support and tax relief. Additionally, addressing the gender pay gap and improving access to care are essential. The fight for a good retirement is now a fight for healthy life expectancy and economic justice.
For those still planning, it is crucial to start saving early, invest in health, and advocate for policies that protect the most vulnerable. The golden age of retirement may be ending, but with collective action, a new vision of a dignified later life can be built.
Frequently Asked Questions
What is healthy life expectancy and why is it falling?
Healthy life expectancy is the average number of years a person can expect to live in good health. It has fallen in the UK due to factors like relative deprivation, inequality, and cuts to social care. This means many people face years of poor health before reaching state pension age.
Why is the gender pension gap so high in the UK?
The UK gender pension gap is one of the highest in the developed world because women are less likely to be in paid work, more likely to take career breaks for caregiving, and have lower savings rates. This results in women retiring with about 37% less private pension income than men.
How can I prepare for retirement in the current climate?
Start saving early, take advantage of workplace pension schemes, and consider additional private savings. Prioritise your health through regular exercise and preventive care. Stay informed about policy changes and advocate for stronger social safety nets.
