The Office of National Statistics report on life expectancy in the UK is concerning.
We now know that if your son or grandson was born in 2016 he can expect to live to 79 and a bit, and if it was your daughter or granddaughter she will make it to nearly 83. These figures are higher than they were a few years back, but not much higher, and the rate of increase is less than previously expected.
All of which is significant for pensions – the Government has expressed its intention to hasten the previously announced timetable for increasing the State Pension Age because state pensions have to be affordable given everyone was living longer. Because we are not living longer as much as previously thought perhaps this plan will now be shelved. Further Parliamentary approval is needed anyway, which will not be easy to obtain at the moment. This is important for the Society not just because all of our members will one day draw State Pension but because the 2015 pension scheme pays out at State Pension Age (unless you serve until you are 60), so any increase in the SPA is a lose-lose.
Watch this space!