Since 1890, life expectancy has risen from around 45 years to about 85 in the U.K. Similar increases have been seen in populations worldwide.
So, while living longer is now a given, the challenge many face is finding a way to make a living longer.
“The idea of hitting a cliff-edge retirement at 65 and then living off an annuity is outdated,” says Alistair Byrne of money manager State Street Global Advisors.
Three groups need to change their act so that we avoid a collective socio-financial train wreck:
1. Governments need to increase the retirement age, at which benefits such as Social Security and Medicare kick in.
2. Financial Institutions must up the insurance premiums they ask for.
3. And most of us need to save more.
Nobody said this was going to be easy. Personally, I don’t like the notion of retirement anyway. It’s bad for your health.