EUROPE - The UK's National Association of Pension Funds (NAPF) chairman, Peter Thompson, yesterday reiterated his call to the pensions industry to take a fundamental look at how it defines retirement.
Delivering the initial address at the EFRP/NAPF International Conference in Brussels, Thompson said that without a fundamental review of what is meant by 'retirement' and what is meant by 'work', pensions based on the concept of a fixed retirement age - especially one set many years ago - will become increasingly difficult to afford.
Thompson illustrated his point by referring to a how a man aged 65 can now expect to live to an average age of 85 - a figure that is now set toincrease by around 15% over the next 40 years.
He added: We in the UK have long been used to praising the merits of our second pillar system.
Nevertheless it would be idle to pretend that the UK does not faceproblems. One of these is life expectancy.
On a separate note Thompson told IPN that a review of retirement couldinclude extending the retirement age, scrapping the retirement age altogether or using other saving vehicles in place a conventional pension.
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