Sunday, May 28, 2017

Work til you drop

The retirement age should rise to at least 70 in rich countries by 2050 as life expectancy rises above 100, according to the World Economic Forum.


It said the increase will be needed, as the number of people over 65 will more than triple to 2.1 billion by 2050. By then, the number of workers per retiree will have halved to just four.
In the UK the state pension age is due to rise from 65 in 2018 to 68 by 2046. A report for the Department for Work and Pensions earlier this year has suggested that workers under 30 may not get a state pension until they are 70.


The WEF said the retirement savings gap was forecast to rise from $70tn to $400tn by 2050 in the eight countries studied: Australia, Canada, China, India, Japan, Netherlands, the UK and the US. The gap is the amount of money required in each country to ensure a retirement income equal to 70% of a person's pre-retirement income.


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