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Planning for longer lives

Medical advances have helped increase life expectancy, but with this good news comes challenges in retirement financing. Governments, insurers and pension funds should work together to help plan for longer lives.

We are living longer and having fewer children. These two issues are behind the growing financial challenges associated with rising demand for retirement income, long-term care and healthcare in old age.

According to the OECD, the world's proportion of over 65s will rise from 7.7% in 2010 to 16.2% by 2050 with many countries experiencing numbers in excess of 30% and emerging nations ageing rapidly.

During a European Policy Centre dialogue, Swiss Re Head of Life and Health Alison Martin stated that the challenge is not just that people are living longer – which is a positive trend in society – but also the fact that how long they live has been significantly underestimated for decades.

Working together to fund longer lives

A joined-up approach is needed with governments, businesses and financial service providers working in tandem to create a suitable plan. Educating the general population about the issue is also important

As a provider of risk transfer services to the life industry for over a century, Swiss Re has funding solutions to assist the insurance industry and pension funds in addressing their longevity exposure.

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Image: Cees Dekker TU Delft / Tremani

Published 1 September 2011
Updated 5 November 2012

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