Can we rely on the NHS and state pension when we’re 70?

The comparisons being drawn between where we are today compared to the early years are truly mindboggling.

But as life expectancies continue to rise, and medical advances are made, what can we expect from the NHS once we reach age 70?

To coincide with the Service's anniversary, Aegon asked a panel of 700 consumers aged 18 to 64 to reflect on their expectations of the NHS when they reach age 70.

Life expectancy improvements have big implications for the cost of the state pension too, so we also asked for views on its future.

Funding challenges for both the NHS and state pensions have received significant media coverage and this seems to be sinking in.

If there are concerns that the state won’t provide future generations with what it provides today, how are people preparing to take more personal responsibility?

The survey found one-third (33.1 per cent) of people think the NHS will no longer be free at point of care when they are 70; a further quarter (24.8 per cent) are unsure.

The future sustainability of the state pension didn’t fare much better - 26 per cent of people don’t think everyone will be entitled to the State Pension when they are 70, with a further 22 per cent uncertain.

In both areas, concerns were strongest among younger respondents.

Almost half of 18 to 34-year-olds (47.7 per cent) expressed doubts over the NHS remaining free at point of access and 40.9 per cent of this age group predicted that by the time they reach 70 the state pension will no longer be available to everyone.

Of course, they are the ones with longest to go until they reach age 70.

But if they don’t expect to receive today’s benefits, will they be prepared to pay higher taxes or National Insurance if that’s needed to sustain funding?

Or are they prepared to take more personal responsibility and fund their own health and retirement provision?

Alongside resolving NHS funding, the government is due to consult on sustainable funding for social care.

Here, those surveyed found it very hard to predict if they might need social care at age 70, with nearly half (45.3 per cent) saying they didn’t know and only 4.5 per cent responding that they believe they definitely would need it.

This uncertainty reinforces the importance of people planning ahead for both expected and unpredictable later life needs.

If there are concerns that the state won’t provide future generations with what it provides today, how are people preparing to take more personal responsibility?

The survey indicated an overwhelming acceptance that the state pension alone is not enough, with only 1.7 per cent of people thinking it will provide them with enough income to live on at age 70.

While it is encouraging to see this realism, it makes it all the more worrying that Aegon’s recent Retirement Confidence Survey found more than one in eight (13 per cent) don’t have any pension savings whatsoever.

The self-employed are particularly vulnerable, with no current auto-enrolment solution to make pension savings the default for them. 

In the UK, it’s not the norm to have private healthcare or to fund in advance for social care.

But if it’s no longer a given that the state will offer universal health and social care free at point of need for all, younger generations may increasingly need to make more of their own provision for health and social care, as well as their retirement needs.

That, unfortunately, won’t come cheap.

Steven Cameron is pensions director at Aegon