Life expectancy is rising at a slower rate than previously predicted, what does this mean for future pension age plans?
The Office for National Statistics forecast in 2014 that by 2028 the average UK man at age 67 would live for another 21.1 years, and a woman 23.1 years. However, the latest predictions bring that life expectancy for men down to 18.7 years, and women 20.8 years, reports The Financial Times.
Will this updated prediction cause UK policy makers to rethink the planned increase in state pension age to 67 and 68?
Over the coming century, the percentage of pensioners is expected to increase from 17.7 per cent in 2020 to 28.5 per cent. Importantly, with people having fewer children, there will be a deficit in the future state pension bill if not addressed. The Government faces a tricky balancing act.
Financial Advisors will likely face difficult questions from their clients about how to plan ahead for financial security in older age when it seems surrounded by so much uncertainty.
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