Business and Economy

Companies With Pension Benefits Grapple With Cost Of Longer Lives

Published February 24, 2015 at 12:33 PM CST

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General Motors is among the companies still offering pensions, but its pension plan is facing a growing shortfall as retired employees live longer. (Jeff Roberson/AP)

The Society of Actuaries recently estimated that the average 65-year-old woman will live to 88.8, up from 86.4, the estimate from 2000. The average 65-year-old man today will live to 86.6, up from 84.6.

These increases won’t impact many U.S. companies that shifted their retirement plans to funds like 401(k)s, but for companies that still offer pensions, longer lives for retirees could hurt the bottom line, to the tune of billions of dollars.

Jason Bellini of The Wall Street journal speaks to Here & Now’s Robin Young about some companies that are grappling with the issue.

Read more on this story in The Wall Street Journal

Guest

Jason Bellini, senior producer at The Wall Street Journal. He tweets @jasonbellini.