Getting serious, Pensions

It’s official; not only has the UK an aging population but the fastest growing age group is for those aged 85 and over!

Posted by Liz Gibling on

If you are looking for a reason to save for retirement the recent data produced by the Office of National Statistics (ONS) may provide you with all the incentive you need.

The ONS document entitled ‘Population Aging in the United Kingdom’ reveals some startling statistics about the regions of the UK and comparisons with EU countries. The report states that the fastest population increases have been in the ‘oldest old’, those aged 85 and over and claims that by 2035 the number in this group will have grown by 2.5 times that of 2010. They project that by 2035 there will be 3.5 million in this group accounting for 5 per cent of the total UK
population.

The report also revealed that there was a proportionately smaller increase in the over 65 population compared with the over aged 85 group since 1985, but that by 2035 those aged over 65 will account for 23 per cent of the total population.

Percentage of older people in the UK 1985, 2010, 2035

Percentage of older people in the UK 1985, 2010, 2035

Source: Office for National Statistics, National Records of Scotland, Northern Ireland Statistics and Research Agency

There is some good news for the UK compared with the EU countries on the subject of aging. The populations of all EU countries are projected to become older as populations increase. However from being one of the more aged countries in Europe in the mid 1980’s, the UK has aged less rapidly over the last decade and by 2035 ONS project that only four EU countries will have a lower older population ratio. One of the contributory factors for this change in fortunes is a relatively high fertility rate!

The ONS report makes interesting reading, and provides useful data on which retirement policy is based. The projections will not only affect the plans of those coming up to retirement but those starting out on the journey to save for the
future.

  • State pension can only provide a basic level of income in retirement.
  • You will have to work longer and retire later.
  • Start saving now if you want an enjoyable retirement.
  • Save in to pensions and take the tax breaks.
  • Review annually and increase savings to keep plans on track.
  • Speak to a Financial Adviser if you need further help.