New figures from the Department of Work and Pensions (DWP) show that over two million people who are already over age 50 will reach their 100th birthdays.
2011 will see a dramatic rise in the number of ‘baby boomers’ reaching age 65. According to the Department for Work and Pensions, nearly 658,000 men and women will turn 65 this year. This is the largest number to reach this important birthday in a single year since records began.
The number of people reaching their 65th birthday will continue to climb in 2012, with 806,000 people forecast to turn 65 next year.
When compared against the 100,000 babies born each year in England and Wales, this is a stark indication of an ageing population.
This generation faces difficult retirement planning issues and also highlights the growing need for proper care fees planning in older age.
The DWP projections suggest that 2.2m people, already in their fifties or older, face up to a further 50 years of life ahead of them. What will future state provision look like for this massive shift in demographics given the current parlous condition of the economy and deficit?
For the first time, we are seeing a shift that will see many people retired for longer than they worked!
Increased flexibility in retirement ages may help and many of us want to be able to continue working past our normal retirement ages. In reality this can be difficult due to , poor health or lack of available jobs
Reaching 100 and receiving a telegram (or is that an email or text?) from the Queen is a significant achievement. In financial planning terms, it means that you have outlived typical life expectancy. There is a good chance that it also means you have run out of money, unless you previously took steps to guard against this eventuality.
In addition to proper retirement income planning, it is also important to consider the likely cost of funding long-term care. Whilst the provision of care for the elderly remains a Government priority, it is likely to be unaffordable for the State in the future to provide a personalised care package to each person who needs it.
Under the terms of the current system, the cost of care in older age is typically self-funded; often through the sale of property to raise a capital sum which can then be managed, through a variety of options, to pay the fees for residential care or care in the home.
There are always two sides to the news associated with improved life expectancy. Make sure that you consider the financial implications of a longer life.