Longevity Has Become a Longevity Risk in Britain
According to the International Monetary Fund (IMF), a trouble has raised for the British workers where they can be forced to postpone their retirements to save the country from financial ruin. It stated that the national debt would spiral out of control if the average lifespan in the UK rose by just three years more than predicted. Countries should consider linking the retirement age to life expectancy. It also said that an essential reform is to allow retirement ages to increase along with expected longevity. On ‘Longevity risk’, IMF urged governments to tackle the problem now before it is too late. This needs to be mandated by the government, but individuals could also be incentivized to delay retirement.
However, experts claim that linking the pension age to life expectancy would inevitably mean more rapid increases. Longevity risk suggested a further increase in retirement ages, higher contributions into pension pots from employers and employees and smaller payouts to those in old age.
It raises the prospect of millions of Britons working into their seventies and even eighties. The state pension age is already being increased to 67 for men and women by 2028, and to 68 by 2046. Demographers continue to expect the rise in life expectancy to slow down. However, such a phenomenon has yet to occur in Britain. After the Second World War, the state pension age was 65 for men. Their life expectancy was 66.4 years, while women’s was 72.5 years. In 1977, the government was guided by actuaries who predicted that average life expectancy in 2011 would be 71. In fact, men today typically live to 77, while the figure is 82 for women. By 2056, the life expectancy for a man and woman living in England is expected to be 84 and 89 respectively. Need cash apply with www.paydaybox.co.uk and get the funds without any backer or security at your door step.
The IMF said that forecasts have consistently underestimated how long people live, as predictions about longevity over the past 20 years had been too low by an average of about three years. It said that if people lived those three years longer than expected in Britain, £750 billion would be added to the national debt by 2050 to pay for the increased costs. That would push the debt burden up from 76 per cent of national output to as much as 135 per cent.
Published by Jack Grayn on December 14th 2011 | Loans
Published by Kevin Cook on December 27th 2011 | Loans
Published by Pramod Kumar Singh on May 23rd 2012 | Loans
Published by Look Right on March 12th 2012 | Loans
Published by Johntygolf on November 26th 2011 | Loans
Published by John Martin on December 16th 2011 | Loans
Published by Angelina Jolie on May 25th 2012 | Loans
Published by Alexander Thomas on December 18th 2011 | Loans
Published by Scarlette Riley on February 8th 2012 | Loans
Published by Sam Hopkins on December 10th 2011 | Loans
Published by Smith Eldwin on July 16th 2012 | Loans
Published by Isol on August 13th 2012 | Finance
Most expenditure mistakes are caused by basic misunderstandings in the securities marketpla...
Published by Vilson Louise on April 7th 2012 | Loans
Published by Ashish Pandey on January 16th 2012 | Finance
Published by John Harry on February 18th 2012 | Finance
Published by King Loothar on December 15th 2011 | Loans
Published by Jack Paul on January 4th 2012 | Loans
Published by Steven Walters on December 27th 2011 | Loans
Published by Adair Sawyer on May 11th 2012 | Finance
Published by DavidVila on January 9th 2012 | Loans