Longevity and Immediate Concerns
The predicted longevity of our children is fuel to debates on social care reform, with Scottish Widows and ONS statistics a reminder to current
leaders that changes need to be made if living to, or close to, 100 is to become the norm. The cost and availability of both state and privately funded care will need to be addressed with some urgency if the forecasts are correct.
In terms of providing for lengthy reitrements, the UK government has already begun an incentive to encourage pension saving, with a scheme that aims to see all workers over the age of 22 automatically contributing to a private pension scheme.
The scheme began with large employers this October and aims to eventually include all businesses and sectors .
The need for a ‘college fund’ will also undoubtedly, now, become a more pressing concern for many parents.
With 40% of parents surveyed by Scottish Widows not yet considering their children’s long term financial security, savings habits will need to adapt if babies born today are to access the education and lifestyle envisaged by the current generation of parents.
|Life Event||Born in 2012||Born in 1983||Born in 1957|
|Pay off student loan||52||33||n/a|
|Pay off mortgage||61||57||54|
|Average Life expectancy||92||87||81|
|Percentage that will live to 100||33.33%||19.5%||12.3%|
Scottish Widows Press Release. Financial Pressure to Snowball for New Centenarians Generation. (2012). Accessed November 13, 2012.
Department for Work and Pensions. Automatic enrollment into a workplace pension. (2012). Accessed November 13, 2012.
ONS. What are the chances of surviving to age 100? (2012). Accessed November 13, 2012.
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