Life expectancy at birth for men and women fell to 78.6 years and 82.6 years respectively in 2020-2022, the latest figures from the Office for National Statistics (ONS) have shown.

The data covers the period of the Covid-19 pandemic, and LCP head of longevity and demographic insights, Stuart McDonald, said it was therefore “no surprise” life expectancy had fallen after decades of increases.

“Today’s data tells us little about the life expectancy of people alive today,” he noted. “What is more important is how death rates will change in the future, especially given the ramifications of the Covid-19 pandemic and ongoing pressures on the NHS.

“Trustees and sponsors of pension schemes need to think carefully about how these trends will affect their members in the future, whereas today’s update is a glance in the rear-view mirror.”

The data also revealed that the number of people reaching 100 had more than doubled in the past 20 years, with 15,120 in England and Wales in 2022.

PensionBee director of public affairs, Becky O’Connor, stated that while the age anyone will live to is a great unknown, many people were living longer and this had “big implications” for pensions and retirement planning.

“The growing burden on the state pension from an ageing population is a significant social issue, which over time, is likely to lead to the system becoming less generous,” she continued.

“Meanwhile, the prospect of us living longer also means that there is even more reason to contribute as much as possible to our private pensions. Someone with a £100,000 private pension and the full state pension could maintain a basic living standard on about £13,000 a year if they live to 100, based on the Pensions and Lifetime Savings Association’s Retirement Living Standards guide.”

Hargreaves Lansdown head of retirement analysis, Helen Morrissey, agreed that the increased number of elderly people brought financial challenges for people and the government to get to address.

“How many people saving into a pension today are truly aware of their potential to spend 30 years or more in retirement, and how much they need to save to cover such a lengthy period?” Morrissey asked.

“What does this mean for our working patterns and what we do with our money? We often look at the longevity of our parents and grandparents, but the reality is that many of us are likely to live longer and we risk being woefully unprepared.

“Most notably it highlights the increasing pressure being placed on the state pension, and the government’s headache in managing the costs of a system people could be claiming from for 30 years.

“Mechanisms such as increasing state pension age can only go so far, as many people will simply be unable to continue to work after a certain point. The triple lock’s role as an uprating mechanism also needs to be reviewed. It’s an issue that government needs to get to grips with quickly and we have long called for an overarching review into the state pension, including the triple lock’s role within it.

“We are hitting a real tipping point when it comes to pensions, and we will have to get to grips with some difficult financial truths if we are to build a resilient retirement.”

However, AJ Bell director of public policy, Tom Selby, said that while the ageing population continued to put a huge strain on public finances, these latest figures would “make it extremely difficult for any government – either now or in the future – to justify a faster increase in the UK state pension age”.

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