AGEING POPULATION CASE STUDY - UK

AGEING POPULATION CASE STUDY - UK

1. In 2005 16% UK's population was over 65, it's predicted this will be 25% in 2041

   • The ageing population's due to increasing life expectancy and a dropping birth rate
     • medical advances and standard of living have improved so people live longer - between 1980 and 2006 life expectancy rose 2.6 years for women and 6.4 years for men
       • 1940's - 1960's was a baby boom with lots of babies being born these babies are now retiring causing a pensioner boom
         • Number of babies being born has fallen ever since the 1970's so there's fewer younger people in the population and so proportion of older people goes up

2. Problems caused

   • More elderly people in poverty as working population isn't large enough to pay for a good pension and allot of people don't have other savings
     • Even the low state pension is difficult for the government to pay as taxes paid by those economically active don't cover the cost of these pensions, as population ages this situation gets worse
       • Health service under pressure as older people use it more - in 2005 average hospital stay for people over 75 was 13 nights however UK average was only 8 nights

3. Coping strategies

   • Raise retirement age so people work longer and pay tax longer and don't claim a pension - UK retirement age currently 60 for women and 65 for men by 2046 it will be 68 for everyone
     • Encourage immigration of young people to the UK - 80% immigrants from new EU countries in 2004 were 35 or under - this increases the number of people paying taxes
       • Encourage birth, working tax credits support parents who go back to work after children are born so it's affordable for couples to have children
         • Encourage people to do private pensions, government gives tax breaks for certain private pensions as with private pensions people won't be so dependant on the state pension