At what age are you planning to retire?
Do you have enough saved up to do so?
Two simple questions, but the answers are not so simple.
Depending on where you live, you could have a pension waiting for you – either from the government, or your job, or your personal savings.
But is it enough?
A new report from the World Economic Forum, We’ll Live to 100 – How Can We Afford It? takes a closer look at the global pension crisis. Here are five key findings.
1. We are living much longer than what pension systems were designed for
The chart below illustrates the retirement ages for the six countries with the largest pension systems.
Retirement age for most of these countries is 65 (with Japan the exception, at age 60).
The bottom bar represents the number of years of payments expected using life expectancy in 1960. This ranged from five to eight years of payments on average.
Looking at life expectancy in 2015, we can see that pensioners are now living eight to 11 years longer – and in the case of Japan, a whopping 16 years longer.
That means that pension systems are now having to pay benefits for two to three times longer than what they were designed for.
The top bar represents the expected increase in life expectancy by 2050.