The challenges faced by an ageing society, with more people today expected to live to 90, may come at a high cost to pensions and healthcare, according to a new study.
Realising the full potential of older citizens in the UK will be central to the government’s response to changing economic circumstances and the drive to build a strong and fairer economy according to the report by Cass Business School in partnership with the International Longevity Centre UK
It also found that the life expectancy of men and women will begin to converge.
Les Mayhew, professor of statistics at Cass Business School, said: “The increases in life expectancy also raises important questions, as later retirement requires a capacity to work for longer and it may also mean downsizing one’s home at an earlier stage, with significant implications for the housing market.
“As a result, we need better information about life expectancy at both the population and individual level to enable better decision making. Policies must be durable, especially anything to do with pensions, health and social care, or housing.”
The study outlined a new method for forecasting life expectancy based on historical mortality data from England and Wales
Paul Lindfield, director of wealth management at Sedulo Wealth Management, based in Manchester, said: People will have to look at sustainability in terms of income and assets. The biggest worries for retirees going forward are the effects of quantitative easing and inflation on their investments”