The Cost Of Aging Is Outpacing Resources

As we are living longer the cost of aging increases.

A strain on private pensions, social security and on health services could prove problematic.

Raising the retirement age, increasing taxes to fund public pension plans and lower benefits could hep mitigate the strains of an aging population.

Educating citizens better on how to prepare for their retirements and by promoting retirement products that protect people against the risk that they outlive their assets.

Already the cost of caring for aging baby boomers is beginning to strain government budgets, particularly in advanced economies where by 2050 the elderly will match the numbers of workers almost one for one. The IMF study shows that the problem is global and that longevity is a bigger risk than thought.

“If everyone in 2050 lived just three years longer than now expected, in line with the average underestimation of longevity in the past, society would need extra resources equal to 1% to 2% of GDP per year,” it said in a study to be released in its World Economic Outlook next week.

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