'Social revolution' needed to cope with rising life expectancy

Friday, 31 December 2010 12:00

With new government figures showing over two million over-50s are expected to live until at least 100, one expert has called for a "social revolution" to ensure pensions can cope.

Saga director-general Dr Ros Altmann said that the financial implications of people leading longer lives have not been adequately accounted for when it comes to funding retirement.

Final salary pension schemes will face increasing strain by having to pay out for longer, but they at least have the support of an employer, she added.

"However, those of us without such employer guarantees may face decades of struggling to survive with inadequate incomes," Dr Altmann warned.

As people reaching their late-50s and 60s will still have "decades" of life ahead of them, she called for radical changes in legislation and attitudes to ensure they can continue to work to support themselves.

The former Downing Street adviser also criticised businesses that have opposed the scrapping of the default retirement age of 65 by October 2011 as being "dangerously out of touch with reality".

According to research from Prudential, the average man retiring in 2010 can expect to receive an annual income of £19,593 from their pension.

For women, the figure was £12,169.

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