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"If markets don't perform or life expectancy rises by more than expected, then it might be necessary to cut pension incomes," Ms Altmann said.
As life expectancy rises, the rainy day for which we all need to save could last more than 30 years.
Crucially, as life expectancy rises citizens would get the message that they need to work longer as available annuity rates at a given age decline.
As deaths from heart attacks decline and life expectancy rises, death has become a protracted process for more and more people.
A better approach would be to leave the full benefit age alone and instead directly reduce the monthly benefits as life expectancy rises, to keep average lifetime benefits roughly constant.
If life expectancy rises faster than these forecasts assume, the eventual bill could be higher.Stemming the tide of early retirement, even though it will not be easy, is too modest a goal.
Similar(46)
In 2015 global life expectancy rose to 71.4 years, a five-year increase since 2000.
And the market for such policies shrank as life expectancy rose.
Life expectancy rose from 65 to 74 years in a population that nearly doubled, from 1.6 million to 3 million.
During that time male life expectancy rose by nine years.Since the turn of the century that trend has reversed.
With investment returns falling and life expectancy rising, every country is engaged in a debate on pensions.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com