A quick google search shows that there are, by the most wild estimate, 600 people on the planet, at most, who are over the age of 110. More like 150 to 300.
Yes we know that people who are very old are rare. Rare does not equal nonexistent. At least in the US denying someone service on account of age is a civil rights violation. The fact that it is a rare problem does not excuse them from failing to deal with the problem properly.
Raising the age to 130 just means there's an extra 20 years of potential pension fraud or incorrect payments.
That is not and should never be the problem of the customer. The bank can suck it up and deal with the problem in other ways. Go visit the customer if they are that worried about it. Old people often need help anyway.