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Longevity and the rise in the life expectancy across nations of the world have been daunting the policymakers, pension funds, and the insurance companies. Many developed countries have had issues in the recent past of failures towards higher pay-outs to the pensioners. The actual survival age in many developed countries is higher than in most developing countries. The various studies indicate that the savings have also been increasing to meet the consumption post-retirement. Longevity raises the rate of savings and physical capital accumulation. Some countries had initially a higher tax rate due to public education (Zhang, Zhang, & Lee, 2003).
The rising inflation also is a hindrance for the investment companies to deliver returns beating inflation. The various studies in this context have been on aggregate savings level and longevity, the research findings observed that in certain conditions, the hypothesis of the economic theory supports that increase in longevity leads to a higher aggregate saving in steady state (Sheshinski, 2009) & (Bloom, 2002). The holding period of the assets also was longer when classified for permanent income distribution and the findings observed high permanent income people kept large assets until very late in life and proved to counter the rise in medical expenses with age (De Nardi, French, & Jones, 2009). As regards to aging, the requirement for health care was observed for a longer period compared to previous generations (Lindgren, 2016). The improvement in technology for treatments cost involved and modest progress against chronic diseases like cancer would lead to enormous social values (Murphy & Topel, 2005).