The burden of increased longevity in the rich world
ON JUNE 6th François Hollande, France's new president, unveiled plans to reverse a planned rise in the official retirement age to 62. In most other countries the trend is in the other direction. According to a new report from the OECD, increases in the official retirement age are planned or underway in 28 out of its 34 member countries. As can be seen from the chart below, pensionable ages have failed to keep pace with longevity. This comes at an increasing cost to the state. The OECD expects governments' expenditure on pensions to rise from 8.4% to 11.4% of GDP between 2010 and 2050. And in most countries people retire earlier than the official retirement age. In 1970 the average Frenchman entering retirement could expect to live for just over ten years. Now he could expect to live for 23.