Pensions - Articles - Pensions under pressure as Baby Boomers generation retire

 Aegon discusses retirement challenges linked to today’s Resolution Foundation report which highlights the ratio of workers to ‘dependants’ on the turn as Baby Boomers retire in greater numbers

 Commenting on the report, Steven Cameron, Pensions Director at Aegon said: “Today’s report highlights that in recent decades there have been 10 workers for every 7 either under age 20 or above age 65. But by the 2020s, the ratio will worsen to 10 for every 8.

 “This is in part driven by an increase in the Baby Boomer generation born immediately after the war reaching retirement age in increasing numbers. This shift will have a profound impact on society, including on retirement and needs reflected in Government pension policy.

 “While those retiring today will often do so with a generous defined benefit pension, in the years to come an increasing number of people will be relying on less generous defined contribution schemes to supplement their state pension. If today’s workers are also having to fund the costs associated with an older population either directly or through taxation, then there is a growing chance many will reach retirement without sufficient savings themselves. Policy makers need to be mindful that any cuts to today’s pension system, whether through less generous tax relief or lower increases in state pensions, may be storing up problems for tomorrow’s pensioners.”