The use of AI has exploded over recent years, and few areas remain untouched by its influence. Some of the advances could lead to significant developments in key areas, such as health, and could have a considerable impact on how we live our lives.
Indeed, AI is already transforming medicine. Researchers are using AI to accelerate drug discovery, identify diseases earlier, personalise treatments, improve diagnostics, and even help with surgery.
While it’s impossible to say just what the effect of these advances could be, many experts believe AI has the potential to increase human longevity.
So, if you’re planning your retirement, advancements in AI could mean your money needs to last far longer than you have prepared for.
Read on to find out why AI could mean your retirement lasts longer.
Retirement has transformed in just a few decades
When the State Pension was introduced in 1948, men became eligible at age 65, while women could claim it from 60. This remained the case until 2010, when the State Pension Age equalised for men and women, and today it stands at 67 for both.
However, life expectancy has risen far quicker than the State Pension Age and is likely to rise further.
Figures from the Office for National Statistics (ONS) show that in 1951, the average person in the UK could expect to live to about 69. By 2011, that figure had increased to approximately 81.
The trend is expected to continue, and the ONS life expectancy calculator estimates that a baby born in the UK today could live to about 89.
So, even without AI, retirement could now last several decades, which means your savings may need to support you for far longer than they did for previous generations. But continued advances in healthcare and technology, particularly with assistance from AI, could extend lifespans even further.
This has important financial implications, as the longer you live, the more income you’ll need.
Advancements in healthcare could also mean more time in good health
Traditional retirement spending models typically suggest that expenditure naturally declines in the latter years of life, except for care costs in the final stages.
The thinking is that in the early years of retirement, you are likely to travel more, spend more time exploring hobbies, and go out with friends and family more often. As you get older, mobility may decrease and you may feel more tired, which can mean you spend less and stay in more.
While this trajectory is likely to broadly remain the same, advancements in healthcare and AI-enhanced technologies could mean you spend more years in good health.
This could mean your retirement spending stays higher for longer, requiring you to alter your withdrawal strategy and overall retirement planning.
Cashflow modelling can help you plan for different scenarios
No one knows exactly what the future holds for them or how medicine and AI could evolve to change the course of human life, but you can stress-test your finances to project how they would fare in different scenarios.
Cashflow modelling allows you to do just that. It looks at your financial standing, including your:
- Savings
- Investments
- Assets
- Income
- Expenditure
As well as factors outside your control, such as:
- Inflation
- Market performance
- Your lifespan
You can then project various models showing how you would manage in different situations. This could include:
- Retiring at 60 and living to 100
- Retiring at 50 and being in good health to 85
- Living to 90 and needing care for the final five years of your life.
Indeed, cashflow modelling allows you to project any scenario and understand what changes you may need to make now to ensure you are prepared for that possibility.
We can help you make changes to your plan to ensure you are prepared for an uncertain future
AI may not dramatically extend human lifespan. It may simply improve quality of life. Or it may exceed today’s expectations entirely. Nobody knows.
What we do know is that retirement planning has become increasingly complex. Longer life expectancy and improving healthcare all make it more important to build plans that are designed to be resilient.
We can help make small but significant changes to your plan to ensure your finances are able to withstand various scenarios that could come to fruition. This could include:
- Designing a tax-efficient withdrawal plan for your pension and savings
- Exploring how delaying or phasing your retirement could affect your long-term finances
- Adjusting your pension contributions to help boost your retirement fund
- Rebalancing your savings and investments to support long-term growth.
By using cashflow modelling, recommending adjustments to make, and continually reviewing your plan as circumstances evolve, we can make sure your finances support the life you hope to enjoy, however long that may be.
If you would like to talk to us about this further, reply to this email or call us on 0117 959 6499.
Risk warnings
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.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
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.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
This article does not constitute tax, legal or financial advice and should not be relied upon as such. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. For guidance, seek professional advice.
The Financial Conduct Authority does not regulate cashflow planning or tax planning.
Approved by Best Practice IFA Group 10/08/2026
