State pensioners living in some of the UK’s most affluent areas can receive more than £400,000 in State Pension payments over their lifetime, simply because they tend to live much longer.
While everyone with 35 years of National Insurance contributions qualifies for the full new State Pension, the total amount paid over a lifetime varies widely depending on where you live and how long you are expected to live.
Why Postcode Makes Such a Big Difference
The State Pension is paid weekly from a set age, currently 66, regardless of where you live. But the longer you live, the more pension payments you receive.
New analysis using Office for National Statistics (ONS) life expectancy data shows huge regional differences across the UK.
In Kensington and Chelsea in west London one of the UK’s wealthiest boroughs women who reach age 65 are expected to live until almost 89 years old on average.
That means a woman claiming the full State Pension there could receive around £403,000 over her retirement.
£140,000 Difference Compared With Some Northern Cities
In contrast, women in Glasgow which has the lowest life expectancy for women at age 65 are expected to live until around 83.
As a result, a woman in Glasgow could receive about £140,000 less in State Pension payments over her lifetime compared with someone in Kensington and Chelsea.
Best and Worst Areas for Men
The pattern is similar for men.
The area with the highest lifetime pension value for men is Hart in Hampshire, where a 65-year-old man is expected to live to 86. That could result in around £345,000 in total State Pension payments.
By comparison, men in Blackpool, where life expectancy is much lower, may receive around £95,000 less over their lifetime.
Why the South Comes Out on Top
Almost all of the areas where pensioners receive the highest lifetime payouts are in London or the south of England.
For women, high-life-expectancy areas include:
- Kensington and Chelsea
- Westminster
- Camden
- Richmond upon Thames
- Barnet
- Harrow
- Winchester
- South Hams in Devon
For men, top areas include:
- Hart (Hampshire)
- Richmond upon Thames
- Barnet
- Harrow
- Westminster
- Wokingham
- Winchester
- Uttlesford
Only one northern area, Ribble Valley in Lancashire, appears in the top ten for men.
How the Figures Were Calculated
The estimates assume:
- Pensioners start claiming at age 66
- The State Pension increases by 2.5% a year, the minimum under the triple lock
- People receive the full new State Pension, currently £230.25 per week
The calculations were produced by wealth managers using official life expectancy data.
Why This Is Causing Debate
Experts say this highlights a major fairness issue.
Because everyone gets the same weekly amount, people who live longer often in wealthier areas receive much more overall. Meanwhile, people in poorer regions tend to die earlier and receive far less, despite paying into the system.
Former pensions minister Steve Webb explained that the pension system works by “risk pooling”, meaning those who die earlier effectively subsidise those who live longer.
Ideas Being Discussed to Reduce Unfairness
Some experts have suggested possible reforms, such as:
- Guaranteeing a minimum number of pension payments
- Allowing unused pension value to pass to family members
- Adjusting the system to reduce extreme regional inequalities
However, no changes have been announced so far.
State Pension Age Under Review
The government is currently reviewing the State Pension age, which is set to rise to 67 by 2028 and could increase further.
With pension spending expected to rise sharply over the next decade, some analysts warn the pension age may need to reach 74 by 2068 to keep the system affordable.
Critics argue that increasing the pension age could worsen regional inequalities, as people in areas with lower life expectancy may receive even less overall.