We just keep living longer

The FT says ‘A sharp upward revision to the UK government's forecasts of life expectancy for those over 65 has raised concerns that the strain on pensions and healthcare systems may be greater than assumed.’

The new UK forecasts predict that by 2041, a man aged 65 should expect to live a further 20.9 years, a jump of 10.58 per cent from the previous forecast made in 2001. For men over 80, the increase is even more dramatic: a jump of 13.3 per cent to 10.2 years.
James Vaupel, a professor of demography and a founder of the Max Planck Institute for Demographic Research in Rostock, Germany, said state social security systems have not taken account of the improvements in longevity. "The traditional method has been demonstrated over and over again to be too pessimistic," he said. Do go and visit the Max Planck Institute web site. It is a superb source of research and data about demographics.

The really scary thing about this is forcibly stated by Chris Curry, research director at the Pension Policy Institute. “While the sums were complex, a 10 per cent increase in life expectancy could well translate broadly into a 10 per cent rise in the bill for pensions and other benefits for the elderly”.

There is not much a marketer can do with this information other than to see it as further evidence of the shift in Europe’s population profile. From their personal perspective it might be worth increasing the pension contribution since it looks as if life is only going to get tougher for the elderly.