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Majority unwilling to cover costs of ageing population

first_img Comments are closed. Majority unwilling to cover costs of ageing populationOn 23 Mar 2004 in Personnel Today Previous Article Next Article Related posts:No related photos. The majority of Britons expect to retire later in life, but they areunwilling to pay for the rising costs of an ageing population, according to anew report. A survey of nearly 3,000 people, by consultants Watson Wyatt and marketresearchers YouGov, found that while the majority understand UK demographictrends, less than one in five is willing to pay more than 2 per cent extra intax or National Insurance to fund the costs of an ageing society. An additionalexpenditure of an estimated 4.5 per cent of gross domestic product (GDP) islikely to be required simply to maintain current living standards for theelderly. The survey also found that more than 50 per cent of the respondents expectthat ‘significantly more’ people will have to work to later ages in the future,while a further 38 per cent expect ‘slightly more’ people to have to worklater. Less than 7 per cent believe fewer people will end up retiring later. The UK population will age significantly over the next 20 years. Currently,people aged over 60 make up about 21 per cent of the total population. Andaccording to United Nations population projections, this number will rise to 28per cent in 2023 and will reach 33 per cent by 2033. Watson Wyatt’s analysis of the survey results found that those expectinglittle in the way of retirement income from the state were the least willing topay more in tax and national insurance to ensure the standard of living forpensioners is maintained. Those who are out of the labour market, olderindividuals and those anticipating longer life expectancies, are willing to paymore. “It appears that individual responses are based, to a large extent, onwhat is in their personal self-interest,” said Jonathan Gardner. “Those who will gain the least from higher benefits because they expectto rely mainly on private savings in retirement are the least likely to bewilling to pay more taxes to pay for the elderly. Those out of the labourmarket who will gain the most from state subsidies are clearly most in supportof higher taxes to pay for the elderly.” By Quentin Readelast_img read more