UK - Increasing the state pension age would help private provision keep up with increasing longevity, the Pensions Policy Institute claims.
The PPI’s latest briefing note - How Long Does a Pension Have to Last? - points out that 89%of 25-year-old men will live to 65, compared to just 62% in 1950.
The length of retirement has increased significantly too. Half of today’s 40-year-old women will live into their early 90s, and one quarter into their late 90s. Life expectancy for the 1950 generation was early or late 80s.
PPI director Alison O’Connell said:
“The fact that we are living longer increases the costs of occupational schemes. It would cost less to provide a pension that started later as it would result in a better pension for longer. That logic applies to both occupational schemes and the state scheme.”
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