Over the last fifty years, thanks to advances in medical science and improved social care, life expectancy has been increasing across the World. And whilst there has been a slowdown over the last couple of years, it is still estimated that half of the babies born in the UK last year will live to be over 100 years old.

However, this increased longevity will inevitably have a major and irreversible effect on the economy, society and the social systems that have been created to ensure that citizens are protected in their old age.

It may be incredible to think this now but it is estimated that if today’s babies live until 2120, they could well have spent more time in retirement than working.

This means that one of the main challenges facing policymakers over the next few years is to change a support system that was designed for a retirement period of fifteen years and which is currently inadequate for future needs.

So what are the key challenges in doing this?

According to research from the World Economic Forum (WEF), many of those working today will inevitably have to spend longer working given that the alternative is a much smaller workforce that will have to support an ever-growing population of retirees.

This situation is exacerbated by the fact that many young people are simply not saving for their retirement. In fact, whilst approximately 15 per cent of an annual salary needs to be saved in order to support a reasonable level of income in retirement, many of those starting work seem to be ignorant of this simple fact.

The economic turmoil since the recession of a decade ago means that even for those who have saved diligently, the return from investments made by pension funds have been significantly lower than historic averages, a situation that will inevitably lead to potential shortfalls going forward.

Given these issues, there are a number of key areas that will have to be dealt with if the retirement savings gap is to be closed before it gets out of control.

These include the provision of a “safety net” pension for all, improving ease of access to well-managed cost-effective retirement plans, and supporting initiatives to increase contribution rates.

Unfortunately, the political furore at the 2017 general election over increasing individuals’ contributions to social care through the value of their homes suggests that any interventions will not be easy.

Whilst politicians can avoid this issue in the short term, it is nevertheless a ticking time-bomb waiting to go off with serious societal and economic consequences.

Therefore, there is not a straightforward answer to this problem of an ageing population, especially in ensuring that that there is a social system in place that is financially sustainable over time to meet the needs of those retiring.

Certainly, it is a problem that will not go away and it will be the responsibility of both individuals and government to work together to agree a way forward so that the UK does not face a major crisis in the future that will have serious implications for everyone.