Pensions - Articles - Living longer and old age dependency


More than half of people aged 65-69 are forecast to still be working in the year 2067 according to new figures that highlight the extent of the rise in working in later life.

 Commenting on the release by ONS (Living longer and old-age dependency – what does the future hold?)

 Stephen Lowe, group communications director at Just Group, said:“As the population ages there are concerns about how working age taxpayers will be able to economically support those of greater age. The Old Age Dependency Ratio – comparing those of working age to those above State Pension Age – is forecast to rise from about 300 retired people per worker to 400 by 2064.

 “However, this measure doesn’t take into account that more significantly more people are working later in life which will help reduce the ‘dependency’ on younger taxpayers.

 “Only 10% of workers aged 65-69 worked in 1992 but that has risen to 22% now and is forecast to reach 51% in 2067. For 70-74 year olds, the number economically active was 5% in 1992 and is 10% now but is forecast to be 19% in 2067.

 “The elephant in the room is whether people will be fit and well enough to carry on working because healthy life expectancy has not risen as fast as life expectancy. Our research found that among over-65s who retired early, nearly six in 10 left the workforce prompted by events outside their control such as illness (25%), redundancy (21%) or to become a carer for a family member (10%).

 “There’s a host of measures that need to be aligned to help people remain economically independent for longer ranging from encouraging healthier lifestyles to promoting professional financial planning so that people are better prepared whatever happens.”

  

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