Pension Challenge Is Only Just Beginning
As I write this blog I hear that the World’s Greatest Elder Statesman Nelson Mandela is responding to treatment. We wish him well.
Whilst I think of Nelson at 94 years of age, it also reminds me of the pensions crisis which I believe in many ways is still just beginning.
People are living longer and the world in general is growing older. On current trends, the UK population of those over 65 will triple to 15.5 million by 2074, and centenarians will increase one hundredfold from 10,000 now to one million. As an era of extreme age beckons, we are entering a new domain.
With the average lifespan in the developed world at almost 80, and with children born today expected to live to 100, the balance between generations would be tilting dangerously, even without the grim economic outlook for today’s young adults.
Yet those for whom near-immortality offers no protection against the diseases of old age, such as dementia, also face a bleak future.
Governments realising that pensions are taking a massive parts of their budgets are trying to reduce pension obligations. Companies who have a incredible pension deficits are trying to find ways to limit their obligations.
If Governments cannot or are unwilling to provide they must find a way of educating the public to save. We would all like to live longer in good health but old and poor isn’t a great option.
Nigel Green deVere group
Blog written 12th June