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Stabroek News

UK pension debate to deepen on new life expectancy data
published: Thursday | November 23, 2006

LONDON, United Kingdom (Reuters):

The life expectancy of Britons reaching the age of 65 has increased to its highest ever level, official figures showed on Tuesday, adding to debate about the impact of increasing lifespans on pension costs.

Men aged 65 could expect to live for a further 16.6 years and women a further 19.4 years if mortality rates remain the same as they were in 2003 to 2005, the Office for National Statistics (ONS) said.

The ONS said the rise in life expectancy among older adults has been dramatic in recent years. Between 1980-1982 and 2003-2005, life expectancy at 65 in Britain rose by 3.7 years for men and by 2.5 years for women.

Changing lifespans

Life expectancy varies across the United Kingdom. The highest expectations at 65 are in England at 16.8 years for men and 19.6 years for women, while in Scotland they are lowest, at 15.5 years for men and 18.4 years for women.

The data may add fuel to debate about whether Britons need to boost their savings and work longer than at present to cope with the impact of changing lifespans.

Last month, a report by consultancy Pension Capital Strategies said the deficit in U.K. final-salary pensions among top U.K. firms could be more than £100 billion (US$189.8 billion), about £60 billion more than current figures because firms underestimate human lifespans.

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