Higher life expectancy stretching pension funds

Latest figures show European life expectancies are on the increase.

08:49 29 April 2005

New studies show life expectancies of Europeans are increasing, in turn putting financial strain on pension funds.

At present the number of people over the age of 65 in Europe's 15 pre-enlargement countries is 16 per cent.

However, it is projected that this number will double to 28 per cent by 2050.

This massive increase will place a large financial burden on societies where pay-as-you-go financed pension and health systems are in operation.

With the emphasis on private pension funds in the UK the fact that people are living longer will simply mean that people will be faced with a dilemma: either they have less money to live off in retirement, or they work beyond today's retirement age.

With consumer debt continuing to grow and general concerns that people are not saving enough money to retire on, this new survey is set to ring alarm bells for politicians - especially on the brink of the election.