Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • September 2013
09

Size of ageing workforce 'set to soar'

Open-access content Wednesday 11th September 2013 — updated 5.13pm, Wednesday 29th April 2020

A third of over-65s could still be in work if trends seen over the last decade persist, pensions consultants Buck have warned.

Fraser Smart, managing director at the pensions, employee benefits and investment consulting firm said there was 'no doubt that some people cannot afford to retire'. He said an ageing workforce 'could stop employers hiring younger (and perhaps cheaper) workers, [which] will generate other problems'.

'My concern is for those who are forced to work on, especially where they have been making substantial contributions to pension arrangements,' he said.

Recent Office of National Statistics figures showed that in 2011 one tenth of over 65s are still working. For the age group 65-75, around 16% were still working compared to 8.7% of the same age group in 2001.

'Employers paying minimum amounts in automatic enrolment schemes today may take the attitude that it's not their problem,' he said. '[But] this will have knock on effects for employers, who are going to have to deal with an ageing workforce, or provide a pensions incentive to retire.'

He suggested that an increased number of working people have not realised that defined contribution pension schemes do not deliver the sort of outcomes they were expecting to fund an adequate retirement.

A report by NOW, cited by Smart, suggested that a third of people believe that 'Generation Y', those aged between 18 and 31, will struggle to save enough ever to retire. It also found that 51% of young people themselves believe they will be worse off than their parents because of the rising living costs and a less generous state pension.

'So, unless employers will still need their workers when they are 74, they need to ensure their workers' pension arrangements provide sufficiently for a retirement earlier than that,' he concluded.


This article appeared in our September 2013 issue of The Actuary.
Click here to view this issue
Filed in
09
Topics
Pensions

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Environmental, Social and Governance- GI Actuary

England, London
£70000 - £170000 per annum
Reference
145888

Calling All Australian Actuaries

England, London
£50000 - £120000 per annum
Reference
145887

Calling all GI Actuaries looking to move into contracting

England, London
£700 - £1000 per day
Reference
145886
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ