Increasing life expectancy is causing a headache for pension funds, but two investment firms have come up with plans to tap the healthcare market so schemes can benefit from longevity.

Investment consultancy Towers Watson is putting the finishing touches to a new healthcare real-estate fund and US fund manager Neuberger Berman has closed its Healthcare Opportunities fund to new investment, after raising $507 million. The fund is run in conjunction with a specialist team from New York-based Athyrium Capital Management.