yes, british insurers are taking cognizance of the fact that life expectancy is not static and will continue to add years, going forward by modelling pension products on the basis that people could live to the age of 120 or even 125 years.
britain's oldest man, mr reg dean recently celebrated his 110th birthday on sunday. but it may not take long for mr dean to be overtaken by a new breed of what is termed as 'supercentenarians'.
quoting the office for national statistics, data showed that the number of uk people aged 100 or more has increased 5 fold from 2,500 in 1980 to 12,640 in 2010 and projections suggest that the number of centenarians will exceed 160,000 by mid-2040.
at a conference, mr otto thorensen, director general of the association of british insurers said:
"With men and women living on average 30 years longer than they did 100 years ago, by 2100, people living to over 100 years old will be the norm."
my comments:
with increasing life expectancy, just ponder the challenges facing insurers worldwide (including singapore) on pricing products.
recently, with her passing, our very own supercentenarian, ms teresa hsu lived to a ripe old age of 113 years.
yet, some of our insurers have launched whole life products that come with a maturity of the insured attaining age 99 years or age 100 years.
and with increased longevity, raises another issue in terms of retirement planning. by and large, many people have still not planned for their golden years. even for those that have done theirs, i urge them to do a regular review because many of the retirement plans i have seen are not realistic based on 20 to 30 years of living in retirement. in other words, up to age 80 years max.
other than this, it is also a fact that generally, our population can be considered to be under-insured.
well, i reckon lots more need to be done to educate the masses of the importance of planning.
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