A report published by the World Economic Forum (WEF) has called for the retirement age in financially stable countries to rise to ‘at least 70’ by 2050, in line with increases in life expectancy.
The report revealed that babies born in 2017 can expect to live to at least 100 years old. As a result, it suggested that individuals in nations such as the UK, US, Canada and Japan may have to work until at least age 70. The UK state pension age is already set to rise from age 65 in 2018 to 68 by 2046.
Policymakers have been urged to consider a handful of key strategies in order to help alleviate the situation. Governments should encourage individuals to save regularly within savings products, and should also review their national retirement age.
The WEF also called for education systems to teach financial literacy.
Michael Drexler, Head of Financial and Infrastructure Systems at the WEF, commented: ‘The anticipated increase in longevity and resulting ageing populations is the financial equivalent of climate change.
‘We must address it now or accept that its adverse consequences will haunt future generations, putting an impossible strain on our children and grandchildren.’