July 28 2014 Latest news:
Ed Foss, Senior writer
Thursday, October 7, 2010
The post-second world war spike in births will see a dramatic rise in the number of people reaching pensionable age in the next couple of years.
Baby boomers will be turning 65 in record numbers especially in the latter half of 2011 and the first half of 2012, corresponding with an increase in births in late 1946 and into 1947.
Over 800,000 of them - a staggering 150,000 more than in 2011 - will reach this key milestone in 2012.
This massive increase presents an obvious challenge for the government as many of those turning 65 will also start claiming their state pension.
Since the first of the baby boomer generation started to draw their pension at age 60 in 2005/06, the department of work and pensions spending on people over working age has risen by almost £14bn.
By 2012 spending will have risen by nearly another £4bn.
Pensions minister Steve Webb said: “People are now living longer, healthier lives and most 65-year-olds can expect to live until their late 80s.
“State pensions need to reflect this and we need to make sure that the system is sustainable in the face of increasing longevity.
“We also want to make sure that where older workers want to keep working, they don’t find themselves pushed out of the workplace or experience age discrimination.”
With the latest research showing that many people can expect to spend around 20 years in retirement, the government is currently looking into bringing forward increases to the state pension age. It also wants to ensure that older workers who want to keep working are able to do so, by phasing out the default retirement age.
In 2010, 646,000 people will turn 65; in 2011, 658,000 people will hit 65; and in 2012, 806,000 will reach the milestone age.
In 2030, there will be 5.2 million more people aged over 65 compared to 2010.