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Press comment: ONS stats show one in four aged 65+ within 20 years

If you are covering the latest population data from the ONS, please see the following commentary from David Gibb, financial planner at Quilter. The figures project that one in every four people will be aged 65 and over in less than two decades time by 2038, up from around one in six people in 1998, and one in five in 2018.

“The UK population is experiencing a significant long-term shift toward an older population mix, with one in four people expected to be age 65 and over within the next 20 years. That gradually places increased pressure on age-related public spending, from state pension costs, which already account for a huge share of the government’s annual expenditure, to care provision in later life. The government is grappling with these issues and has struggled to form coherent long-term policy because any proposal is likely to be unpopular.  

“When it comes to care, the state is reluctant to absorb the cost  and wants to share the bill with affected individuals, but many voters see this as an unfair penalty on those unfortunate enough to suffer from age-related illness, which is why Theresa May’s social care proposals were quickly labelled a ‘dementia tax’.

“Likewise, the government has conducted periodic reviews of state pension age, accepting that in order to keep the costs as a share of GDP at a sensible level, it will have to increase retirement age gradually. There are already expected increases to 69 due to kick-in and the long-term direction of travel means that state retirement age is likely to be increased further. We’ve even seen some speculation from think tanks that the state pension age could increase to 75, although the DWP has strenuously denied this has any link to government policy.

“Nonetheless, the important thing for people to be aware of is that the financial pressure of an ageing population will continue to influence a shift toward personal responsibility for later life finances. The decline of defined benefit pensions and the death of the annuity in a low interest rate world means that institutions no longer bear the liability for funding our retirements, and this is instead shifting to the individual. Similarly, a rising state pension age means people will be increasingly dependent on private savings if they want the freedom to decide when they retire.”

 

For more information contact

Michael Glenister
0207 7789 638
07469 144 535
michael.glenister@quilterinvestors.com

Gregor Davidson
020 7002 7164   
079 1752 2784
gregor.davidson@quilter.com

Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £118.7 billion in investments (as at 30 September 2019).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

The Quilter plc businesses are being re-branded as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Charles Derby Group (becoming Quilter Financial Advisers)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Wealth Solutions in 2020)
  • Old Mutual International (becoming Quilter International in 2020)

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.