Changing demographics and family structures
Professor Price explained to the audience of conference attendees that fertility rates have fallen to an all-time low, while gains in life expectancy have tempered. She noted that UK residents now expect to spend more years in later life than ever before, with women anticipated to spend 20 years and men 16 years in retirement. “Families are also changing,” she observed, “We have many more people living alone in later life through divorce, but we also have many more couples living to a later age.”
Housing wealth and later-life work
The professor highlighted that housing wealth, traditionally viewed as essential to financial security, is becoming less dependable. Increasingly, individuals retire without owning or having fully paid off their homes. More people are carrying mortgages with them into later life, while approximately 2 million over-50s rent privately. Coupled with more uncertain housing issues, later-life working patterns are evolving. Although 1.2 million people in the UK are now working beyond the age of 66, many are unable to work up to the State Pension age, worsening inequality.
According to The Health Foundation, the existing policy approach of increasing the State Pension age, combined with failing to address the high numbers of people leaving the labour market due to ill health, risks pushing more individuals into hardship and deteriorating health. Previous increases in the State Pension age have been associated with higher employment levels; however, the rise to 67 years in April 2026 comes at a time when there has been a sustained increase in the number of people out of the labour market due to ill health. Once people have exited the labour market due to long-term ill health, research suggests they are unlikely to return to work, further deepening existing inequalities and highlighting the pressing need for policy intervention.
Financial stability and policy solutions
Professor Price also stressed that financial stability in later life has become much harder to achieve. Precarious work arrangements, where job security and consistent earnings are no longer guaranteed for many, make it more challenging to save towards retirement, with people instead having to prioritise everyday expenses such as housing, food, and utilities. “Financial stability in later life depends on a strong, stable working age population, and investing in long-term savings. However, with the rising cost of living, precarious work and financial insecurity, few people have space for the private market.”
Panel insights
Speaking as the Panel Chair, ABI Director of Policy, Yvonne Braun OBE, pointed out that society is changing “quietly but dramatically.” She observed that while longevity is increasing, retirement contributions from employers remain “meagre,” contributing to the fact that only 28% of ‘Generation X’ (the demographic born between the early-to-mid 1960s and the early 1980s) are on track to meet retirement savings goals for a comfortable retirement. According to research from Get Britain Pension Ready, just 40% of overall respondents are on target with their retirement savings.
Also on the panel was Michele Golunska, Wealth and Advice Managing Director at Aviva. She argued that technology offers a positive path forward, “It will help us engage more and personalise solutions for individuals, rather than a one-size fits all approach.” Golunska also highlighted the success of auto-enrolment, noting that when it comes to saving for retirement, “defaults work.” She called for earlier momentum in pension saving from the first penny earned, a reduction in the age for auto-enrolment to 18, and improved financial education, suggesting that such changes “would make a massive difference.”
The panel ended by emphasising the urgency of Government action, with Aviva’s Golunska describing the forthcoming Pensions Investment Review as “crucial” to addressing these challenges. Chancellor Rachel Reeves has made assurances that the final report is expected to be shared in Spring.
A proactive approach
As people live longer, the landscape of retirement continues to evolve, bringing new challenges such as extended periods of ill health in later life and shifting work patterns that leave many more vulnerable to a retirement shortfall, often because they must prioritise other financial commitments ahead of long-term savings. This highlights the urgent need to increase engagement with retirement planning and develop affordable, tailored solutions that ensure financial security in later years, alongside necessary policy interventions to support those at risk, to enhance their retirement prospects.