Mortality drag: who can afford to live for longer?

Longer life expectancy seems like a vote winner until you start to think about what people will live on in their extended retirement.

Late last week another report came out to highlight fears of a ‘longevity crisis’ in which pensioners will be left in poverty and providers millions of pounds out pocket.

The Board for Actuarial Standards said consumers could see their pension funds being levelled down after trustees realise that they cannot afford to payout previous benefit levels when increased longevity is taken into account.

And there seems to be no known limits as to just how long the human body can keep on going.

To compound matters Japanese women - the oldest living group in society – are still outstripping everyone else with the rate that they add years to their scorecards.

But how are you preparing to finance your seemingly limitless years of watching home improvement programs in front of a log fire?

Advisers, are you taking note of the ‘longevity problem’ when helping your clients plan for the future?

And providers, how are you preparing for this change in demography?