Making pensions and other savings stretch was hard enough when people lived into their late 70s or 80s, but it's even tougher with 550,835 people in England and Wales now living into their 90s. The number living to 100 has more than doubled in the past 20 years to 15,120, according to the Office for National Statistics.

This is happening at a time when general life expectancy has dipped, mostly due to the pandemic. However, there’s a huge gap between rich and poor.

Men in the most deprived areas have a life expectancy of just 73.5 years, almost 10 years less than those in the wealthiest areas who can expect to live to 83.2, official figures show.  

Money makes a difference, as always.

Few will dispute that living longer is a good thing, but it won't be much fun if you spend your final years watching every single penny.

Chris Rudden, head of investment consultants at digital wealth manager Moneyfarm, said the average pensioner now needs a retirement pot of a staggering £650,000 if they are to live comfortably on £30,000 a year from age 66 through to 100. 

That’s on top of the state pension and assumes their retirement savings grow by 1.5 percent more than inflation every year on average.

Few will save anywhere near enough. For those aged 55 to 64, the average retirement pot is currently £107,300, while one in three have next to no savings and will rely on the state pension alone.

Rudden said that from a financial perspective, it is now almost prudent to assume you will live to 100. This affects where you put your retirement savings.

Previously, most people were advised to switch into lower risk investments as their careers drew to a close, to protect their capital.

Many pension plans still automatically de-risk your savings, through a process known as “lifestyling”. 

But Rudden warned: “If you need your money to continue to grow for another 30 or more years, slowing down is not the answer.”

Instead of switching into less risky asset classes like cash and bonds, older people need continued exposure to the stock market.

While shares are more volatile they should deliver a superior return over time. “You can't let your money fester in low-risk bonds for the next 35 years,” Rudden said.

Get the balance right when making pension withdrawals to fund your spending, said Andrew Tully, technical services director at wealth planners Nucleus Financial. “Don’t spend too much too early, but don’t be too frugal either. You want to enjoy your money while you're still active."

While your loved ones may be delighted to have you around until you're 100, they’ll have to wait longer for any inheritance.

If this is an issue, Rudden suggests arranging a "living inheritance", to share your wealth with loved ones (and manage the tax better, too).

READ MORE: We’re all now dying younger - yet the state pension age is RISING

Under "potentially exempt transfer" rules, all gifts are IHT-free provided you live for another seven years after making them.

Tread carefully, as you don't want to give away money you may need later, Rudden said. “It's your money so you can do what you like with it, but if you do want to leave something behind, plan and gift early to avoid the IHT implications.”

Just because you live longer doesn't automatically mean you will be healthier for longer.

It's important to draw up a Lasting Power of Attorney, to allow loved ones to make health and financial decisions on your behalf if you suffer from Alzheimer’s, dementia or lose mental capacity in some way.

The big question hanging over everyone is whether they will need to go into long-term care at some point, with residential care homes in England charging between £26,192 and £44,148 a year, according to Laing & Buisson. Nursing homes are even pricier, rapidly depleting wealth if required, so you may need to set money aside for that expense, too.

As always, it's important to write a will. Even if you do you make it to 100, nobody lives forever. At least, not yet.