Can you afford to live to 100? How to make your retirement income last
With more people living into their 90s and beyond, could your pension last? Discover how to plan a retirement income that stands the test of time.
Living to 100 might once have sounded unlikely. Increasingly, it’s something many of us need to plan for.
Latest figures from the Office for National Statistics show that there were around 625,000 people aged 90 or over in the UK in 2024, including more than 16,000 centenarians. That number has doubled over the past two decades and could rise significantly again in the years ahead.
For those approaching retirement, this creates a new kind of challenge. A longer life is something to celebrate, but it also means your pension and investments may need to last 30, 40, or even more years.
The question is no longer simply “Can I afford to retire?” but “Can I afford to stay retired for the rest of my life?”
Start by understanding how long retirement could last
Life expectancy statistics offer a useful starting point. A 65-year-old man today might expect to live into his mid-80s, while a woman could reach her late 80s. But averages only tell part of the story.
Many people will live well beyond these figures—particularly those in good health or with access to better healthcare. In practice, this means your retirement plan needs to be robust enough to cope with a longer-than-average lifespan.
Planning for a retirement that could last 40 years may feel cautious, but it is increasingly realistic.
Build a clear picture of your future lifestyle
Before you can calculate whether your pension will last, you need to understand what you want your retirement to look like.
For some, that might mean frequent travel, helping family financially, and maintaining a similar lifestyle to today. For others, it could involve a slower pace of life with lower day-to-day spending.
It helps to think in practical terms:
- How often would you like to travel?
- Will you continue hobbies or develop new ones?
- Do you plan to support children or grandchildren?
- Could your housing situation change?
- Are there potential later-life care costs?
Industry benchmarks such as the Retirement Living Standards can provide a helpful guide, but they are only a starting point. Your retirement will be unique, and your plan should reflect that.
Inflation is one of the biggest long-term risks
Over a retirement that could span several decades, inflation can have a significant impact.
Prices have more than doubled over the past 30 years, meaning that the same income buys far less over time. What feels comfortable at the start of retirement may not feel the same later on.
Ensuring part of your portfolio has the potential for growth can help protect your spending power over the long term.
Don’t rely too heavily on the State Pension
The State Pension forms an important foundation for many retirees, but it shouldn’t be taken for granted when planning decades ahead.
Rules can change. The State Pension age is already rising, and future benefits may be adjusted over time.
It can be helpful to model your retirement income both with and without the State Pension included. This gives you a clearer picture of how resilient your plan is.
Estimate the income you’ll need—and how to generate it
Once you have a sense of your expected lifestyle, you can translate this into an annual income requirement.
From there, it’s tempting to multiply this figure by the number of years you expect to be retired. While this offers a rough guide, it doesn’t reflect how retirement income works in reality.
Your pension pot isn’t static. It may continue to grow through investment returns, even as you draw from it. At the same time, inflation will steadily reduce your spending power.
This is why it’s important to think not just about how much you have, but how you structure your income.
There are several approaches to consider:
Investment drawdown offers flexibility, allowing you to adjust your income over time. One strategy is to take the “natural income” from your investments—such as dividends—so you avoid eating into the capital. This can help preserve your pot, although it usually requires a larger starting fund.
Annuities provide a guaranteed income for life, offering certainty and peace of mind. However, unless you choose an inflation-linked option, your income may not keep pace with rising costs over time.
In addition, there are other sources that can boost your retirement income, including ISAs, investments, dividends, property income (rent) and even inheritance.
Combining all these income sources can help you calculate the predicted size of your retirement pot. If there is a shortfall, you may need to recalibrate your current financial plan to account for this difference.
Because there are a variety of income sources to consider, it may not be easy to calculate how much you will have to live on in retirement. This is where the value of professional advice comes into play.
Check whether your current plan is on track
Once you’ve outlined your expected retirement and income sources, the next step is to compare this with your current position.
Are your pensions, ISAs, and other investments on course to deliver the income you need?
If there’s a gap, there are several options to consider:
- Increasing pension contributions
- Adjusting your investment strategy
- Delaying retirement slightly
- Phasing your retirement over time
Even small changes, made early enough, can have a meaningful impact.
The value of professional financial planning
Planning for a retirement that could last 30 or 40 years involves balancing a number of variables—investment returns, inflation, tax, and longevity risk.
This is where financial planning can make a real difference.
At Kellands, we use cashflow modelling to map out your financial future in detail. Rather than relying on rough estimates, this approach allows you to see how your income, assets, and expenditure may evolve over time.
It can help answer key questions such as:
- Will your money last throughout your lifetime?
- How might market changes affect your plan?
- What happens if you retire earlier—or live longer than expected?
- Can you afford to increase your spending or support your family?
By modelling different scenarios, we can help you make informed decisions and adjust your strategy with confidence.
A longer life deserves a stronger plan
Living to 100 is no longer a remote possibility. For many, it’s a realistic outcome—and one that deserves careful financial preparation.
The earlier you start planning, the more options you’ll have. With the right strategy in place, a longer life doesn’t have to mean financial uncertainty.
If you’d like to explore how to make your retirement income last, get in touch with Kellands today. Our experienced financial planners can help you build a clear, resilient plan for the future—whatever it may hold.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
Your pension income could also be affected by the interest rates at the time you take your benefits.
The Financial Conduct Authority does not regulate cashflow planning.