African Demographics Changing Rapidly, Forcing To Re-Think Pensions
Africa has long been known for its youthful population, and while the continent will continue to have the largest youth cohort in the world, they’ll live longer than their forebearers, according to the latest Bright Africa pensions research from RisCura, a global investment firm.
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The research shows that longevity expectations have changed dramatically, thanks to better nutrition, medical advances and overall improvements in the general standard of living.
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“The estimates for the elderly are astounding, which is putting enormous pressure on governments and pension funds to deliver some form of social security,” said Gerald Gondo, Business Development Executive (Africa) at RisCura.
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Estimated at 13.1 million people aged 65 or more in 1975, this figure increased to 41.3 million people in 2015 and is expected to reach 150.6 million people in 2050 and 652.4 million people in 2100.
“Africa will continue to have the largest youth cohort on the planet – but they’ll live longer than their forebearers, and will need retirement income,” Gondo says. “It is critical for savings to take place for this cohort and more importantly, for that savings to sustainably grow in tandem with this inevitable demographic transition.”
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