Longevity not so affordable in long-term

From a discussion of various models for reform of the residential aged care sector in New Zealand:

Enhanced integration of aged care and other health services could improve older people’s outcomes and lower direct costs. It is, however, a complex structural change and international experience suggests that it may, in fact, not reduce total costs, primarily because initial savings are often offset by increased longevity.

• Aged Residential Care Service Review: Summary of Findings (PDF)
  Grant Thornton New Zealand

Always a catch, but then it stands to reason. Increased budgetary and other imposts due to increasing longevity is in fact a recurring theme in the Grant Thornton report above, as indeed it is in the Australian Productivity Commission’s Caring for Older Australians draft report.