OREANDA-NEWS. Thursday 13th October, John Cridland CBE will deliver his opening report into his review of the state pension age. Figures released today by the Office for National Statistics[1] give insight into the issues he must grapple with.

The purpose of the government-commissioned review is to make recommendations on future changes in the state pension age – currently set to rise to 68 by the 2040s. The final report will be published before 7 May 2017.

The review’s terms of reference state that any recommendations must be “affordable in the long term, fair to current and future generations of pensioners, and consistent with supporting fuller working lives”. From its inception in the 1940s, the state pension has carried the same starting age across all corners of the UK – one for men and one for women. Today’s ONS figures, however, show that age structures across the UK are very different.

Average age today – The North East leads the way

It has been previously reported that the average age in the UK is now 40[2]. Using this figure and today’s new data, Aviva’s analysis[3] indicates how the average age differs across regions of the UK. The analysis suggests that the North East has the oldest average age, at approximately 45, and Greater London has the youngest, at approximately 38.

Average age today

North East

45

Edinburgh

44

Cardiff

44

Glasgow

43

Liverpool

43

Sheffield

43

Bristol

42

Greater Manchester

41

West Yorkshire

41

West Midlands

41

Greater London

38

All UK

40

Percentage of population aged 65 and over today – The North East leads the way

Across the city regions in the report, the percentage of the population aged 65 or over today, ranges from 19% in the North East to just 12% in Greater London. 

Percentage of population aged 65 and over, mid-2015

North East

19%

Cardiff

18%

Edinburgh

18%

Liverpool

18%

Sheffield

18%

Bristol

17%

Glasgow

17%

Greater Manchester

16%

West Midlands

16%

West Yorkshire

16%

Greater London

12%

All UK

18%

Projected rise in population aged 65 and over in next decade – London leads the way

It is well reported that the population in the UK is ageing. The ONS data confirms this with the percentage of the UK population aged 65 or over projected to increase by 20.7% between 2015 and 2025. The rate of growth, however, varies at a city and regional level – from 24.9% in Greater London to 13.5% in the West Midlands.

Projected increase in population aged 65 and over in next decade

Greater London

+24.9%

Edinburgh

+23.1%

Glasgow

+20.4%

North East

+19.9%

West Yorkshire

+19.1%

Cardiff

+18.5%

Bristol

+18.4%

Liverpool

+17.9%

Greater Manchester

+17.6%

Sheffield

+17.0%

West Midlands

+13.5%

All UK

+20.7%

Commenting on today’s data, Alistair McQueen, Savings & Retirement Manager at Aviva, said:

“Aviva supports the objectives of the state pension review.

“We are living longer and that is good news. It is right that the government ensures that the state pension age is keeping pace. It is critical that the UK makes the most of all the skills and experience that the older generations have to offer.

“Any changes in the state pension age must be fair. The same state pension age for all is simple to communicate and helps people plan. The same state pension age for all, however, may overlook the different life expectancies of different regions.

“The challenge is a bit like trying to lay a table-cloth over an uneven surface. An independent review is the right place for these complexities to be considered.”

 Ends

Sources:

1 https://www.ons.gov.uk/releases/populationdynamicsofukcityregions

2 http://webarchive.nationalarchives.gov.uk/20160105160709/http://www.ons.gov.uk/ons/rel/pop-estimate/population-estimates-for-uk--england-and-wales--scotland-and-northern-ireland/mid-2014/sty-ageing-of-the-uk-population.html

3 Aviva’s analysis is a weighted average of percentage of populations in different age groups – table 4 in today’s ONS report. 

If you are a journalist and would like further information, please contact:  

Aviva Press Office: Fiona Whytock: 07800 692 299 or fiona.whytock@aviva.co.uk

Aviva’s retirement spokesperson, Alistair McQueen, is available for comment/interview                                                                                                               

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