Plan now for old age

Official figures last week indicated that the growth in life expectancy was slowing down. But that does not mean that the nation is no longer ageing. The latest data from the Office for National Statistics suggest that nearly 12 million people – one in five – are aged 65 and over. By 2066, the number of pensioners will increase by a further nine million, equivalent to the population of London, and account for one in four of the UK total.

This means the ratio between workers and pensioners will continue to deteriorate since there will be fewer of the former to support the latter. Successive governments have sought to address this either by uncoupling the state pension from average wages or by increasing the age at which it can be claimed. An ageing population presents governments with policy dilemmas; but a greying nation should be cause for celebration, not always seen as a problem, provided public policy adapts.

Those who will become OAPS in 2066 are now aged 20. There should be a concerted move to help this generation move on to insurance-funded health and care schemes so that they will not have to rely on the welfare state 50 years from now, if such provision even exists. The current system was established when most people lived just a few years after retirement.

There should be tax breaks to encourage saving and more opportunities for people to carry on working. Better and earlier treatments for ailments that afflict the elderly will enable many pensioners to do so if they wish. Others will contribute to family childcare or carry out voluntary work. An ageing population is a boon with the right planning. But it needs to start now.