Effective pension systems deliver adequate lifetime retirement income at an affordable cost to all. Two changes in current behavior will be required to achieve this ambition: 1. Changing the conversations we have about pension reform, and 2. Changing the conversations we have about the goals and strategies of investing retirement savings.
David Blake, director of the Pensions Institute at Cass Business School in London, has been researching pension policies for three decades.
"Life expectancy has been increasing by roughly 2.5 years per decade in countries in the European Union for the last 150 years," Blake said,, Retirement age has been roughly the same, 65, since the late 1940s in many countries in northern Europe. But during that time, people's life expectancy has gone up by 10 or 12 years."
Assuming that, in light of generational fairness, each generation should spend the same proportion of adult life working, retirement age has to go up, the economist argues.