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Japan: Retirement Age Should Be Raised To 70, Says World Economic Forum

2017/05/29

The retirement age should rise to at least 70 in rich nations by 2050 as life expectancy rises above 100, according to a new statement, BBC News reveals.

The World Economic Forum said that employees should continue working until 70 in nations such as the UK, US, Japan and Canada.

The increase will be needed, as the number of people over 65 will additional than triple to 2.1 billion by 2050. By again, the number of workers per retiree will have halved to just four.

Michael Drexler, chief of financial and infrastructure systems at the World Economic Forum, said the expected rise in longevity was the financial equivalent of climate change.

“We must address it presently or accept that its adverse consequences will haunt next generations, putting an impossible strain on our children and grandchildren,” he said.

In the UK the national pension age is due to rise from 65 in 2018 to 68 by 2046.

A statement for the Department for Work and Pensions before this year has suggested that workers under 30 may not get a national pension until they are 70.

The Forum’s statement, We’ll Live to 100 – How Can We Afford It, said that governments need to make it easier for workers to save for their retirement and praised recent reforms in the UK.

The auto-enrolment scheme means additional than six million British workers have presently been signed up automatically to a pension savings scheme, but fears remain over how much is being set aside.

The WEF said the retirement savings gap was estimate to rise from $70tn to $400tn by 2050 in the eight nations studied: Australia, Canada, China, India, Japan, Netherlands, the UK and the US.

The gap is the all of money required in each country to ensure a retirement gain equal to 70% of a person’s pre-retirement gain.

Jacques Goulet, president of health and Wealth at Mercer, which worked with the Forum to produce the statement, said the issue was at a crisis point.

The Forum as well says that nations should accumulation and combine pensions data to give workers a full picture of their financial position.

It cites Denmark, where an online dashboard collates pension data to give individuals details of their different pension savings accounts.

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