If you don’t think planning for retirement is important, take a look at some new figures issued by the Department of Work and Pensions.
In 2010, 12,000 people will be aged 100 years old or older. In 10 years, this number will double to 22,000 and by 2050, will hit 280,000.
Yes that really is 280,000 and not a misprint!
Don’t forget that an increasing number of centenarians also mean a corresponding increase in the number of pensions.
In 2010, the number is about 12 million. By 2050, this rises to 16 million.
An older society offers challenges
Department of Work and Pensions Minister Lord McKenzie said: “It is clear that in the coming years an older society offers great opportunities as well as challenges.
“Opportunities for those in retirement to continue working, learning and contributing to society, but challenges around how best to support this group. Over the last few years we have built the foundations that will allow us to respond to these challenges.
“The biggest changes to pensions for a generation will mean that millions of people will be saving for their retirement, many for the first time. While our changes to the state pension will make it fairer and sustainable for the long term.
“Along with other proposals to deal with an ageing society – in particular our vision for a new care and support system – we are already working to meet the challenges and aspirations of an older population, both now and in the years to come.”
Tough decisions about funding retirement
For individuals, some decision has to be made about whether relying on State aid is enough – and if it’s not what are the alternatives?
One set of pension and tax rules applies to those who intend to remain in the UK with ISAs, and personal pensions.
Another set of options is available to those who retire abroad – including low tax investments in bonds and QROPS pension schemes.
The clear message is no one lives forever – but it might just seem like it as the 21st century progresses.
