State pension warning as retirees face £210,000 blow depending on where they live

Wealthy retirees receive more than £210,000 in additional state pension income compared to those in the most deprived areas, according to analysis by The Telegraph.

The stark divide is driven by major differences in life expectancy between the richest and poorest parts of the country.

The state pension is meant to give everyone a basic level of financial support in retirement, but in reality, it ends up benefiting the wealthiest people the most.

This is because long-standing gaps in health and wealth mean richer people live longer and receive more pension payments over their lifetime.

The analysis also shows that planned increases to the state pension age will disproportionately impact poorer workers. While all workers currently become eligible for the state pension at 66, with the age set to rise to 67 by 2028 and 68 by the mid-2040s, those in poorer health may not live long enough to see the full benefit.

Hart in Hampshire boasts the highest life expectancy of any local authority in England, Wales or Northern Ireland at just under 85 years.

The average pensioner in Hart draws their state pension from age 66 for 19 years, accumulating total payments of £375,610.

By stark contrast, Blackpool records the lowest life expectancy at little over 76 years - a full nine years less than Hart. Average residents in Blackpool receive their state pension for merely 10 years, totalling £165,720 over their lifetime.

This creates a £209,890 gap between the two areas. The calculations assume recipients receive the full state pension of £11,973 annually after making 35 years of National Insurance contributions, with payments rising by 4.5 per cent yearly under the triple lock guarantee.

Wealthy London boroughs and home counties follow closely behind Hart with life expectancies of 84 years. Kensington & Chelsea, Horsham, South Cambridgeshire, Uttlesford and South Oxfordshire residents live long enough to accumulate £347,978 in state pension payments over their lifetimes.

These affluent areas benefit from the state pension triple lock system, which ensures annual payment increases by the highest of inflation, wage growth or 2.5 per cent.

The extended lifespans in prosperous regions translate directly into substantially higher lifetime pension receipts. The disparity highlights how geography determines pension returns across Britain.

Residents in these well-off areas receive nearly £28,000 less than Hart but still collect over £180,000 more than those in the most deprived locations, demonstrating the profound impact of regional health inequalities on retirement income.

The most deprived areas across Britain see dramatically reduced pension returns due to shorter life expectancies. Life expectancy reaches only 77 years in Middlesbrough, Hull, Manchester, Liverpool and Blaenau Gwent in South Wales, resulting in total lifetime payments of £185,151.

Pensioners in deprived areas receive £190,459 less in state pension over their lifetimes compared to those in wealthier places like Hart, where retirees live longer and collect payments for around 19 years. In contrast, pensioners in poorer areas typically only receive the state pension for about 11 years.

This gap shows how health inequalities directly lead to financial disadvantage in retirement. Even though people in these areas pay National Insurance throughout their working lives, they end up with far less from the state pension, mainly because of shorter life expectancy, something largely outside their control.

Rising state pension ages will disproportionately penalise those on lower incomes who are more likely to live in deprived areas, according to Age UK.

Caroline Abrahams, director of the charity, said: "The state pension provides a crucial income to millions of pensioners in all corners of the UK. If we're to make sure that all pensioners can pay their bills and enjoy a decent standard of living, we need to make sure that the system works.

"It's clear from these statistics that raising the state pension age will particularly penalise those on lower incomes, who are more likely to live in deprived areas."

Raising the state pension age by one year costs roughly the same amount in lost income regardless of location or life expectancy. However, this represents a larger proportion of lifetime state pension income for someone with shorter life expectancy, creating additional disadvantage for residents in deprived areas.

Experts debate whether people likely to die earlier should retire sooner, but practical implementation faces significant challenges. Some countries vary state pension ages based on working history - France allows earlier access for those who started work rather than pursuing higher education, or for arduous professions like miners, soldiers and police officers.

Steve Webb, former pensions minister and now partner at consultancy LCP, said: "For example, there would be 'boundary issues' where people living on two sides of the same street could have different state pension ages.

"There would also be issues about people whose life was spent in a prosperous area, but claiming state pension from an address in a deprived area in order to access an earlier pension.

"Similarly, any attempt to have lower state pension ages for those who had more physically demanding jobs are undermined by the lack of data on the jobs people have done over their lifetime."