A record 1.85 million people over 85 years of age in the UK
As we mentioned in one of our earlier posts today, the revelation that there are over 1.8 million people in the UK aged 85 years or more is set to place more pressure on the UK public purse. Aside from the fact that there will be an enormous increase in pension payments it is highly likely that the cost of healthcare and homecare for those in the later years of life will also mushroom substantially over the coming years. So has the government got its forecasts wrong?
Only a few years ago pension-fund actuaries were forced to backtrack and admit that their earlier forecasts for the UK population were wrong and more people were living longer and claiming various pension payments and benefits. As a consequence, we saw a dramatic fall in annuity rates across the market as investors and insurance companies sought to tackle the changing landscape. Today's revelation that 1.85 million people in the UK are now aged 85 years or more is a surprise to the vast majority of people and will ultimately impact on the public purse.
It is highly likely, probably sooner rather than later, that the UK government will introduce greater tax incentives for those looking at their own pension-fund arrangements because ultimately the government cannot afford to fund the state pension forever and a day.
Share this..
Related stories
Virgin Atlantic in price fixing accusations
The Office of Fair Trading has today stepped forward with a suggestion that Virgin Atlantic employees met up with fellow employees from Cathay Pacific Airways to discuss commercially sensitive data. It is alleged, by the Office of Fair Trading, that this data effectively led to price fixing on the London-Hong Kong route. This is a very important business route and one which has proved very lucrati...
Read MoreUnite union admits that British Airways action is probably over the top
In a surprise development regarding the planned 12 day Christmas strike by British Airways cabin staff, Derek Simpson, the boss of the Unite union, has admitted that the action is "probably over the top". After Gordon Brown entered the fray and pleaded with both parties to negotiate an agreement, the revelation that even some within the union believed the 12 day action is too much does in many way...
Read MoreUK taxpayer banking stakes back in focus
UK Financial Investment, the body created by the UK government to look after taxpayer stakes in Lloyds bank and Royal Bank of Scotland, has today issued figures which suggest the holding of Lloyds bank shares is now in profit by about one pence per share. However, many believe this is a slightly misleading situation because the cost figure of 63.2 pence a share includes a £2.5 billion charge rece...
Read MoreFTSE 100 edging closer to 5000 level
It has been a difficult few days for the FTSE 100 index which fell a further 54 points today to 5046.47 as investors become more and more concerned about the UK economy and the outlook for the worldwide economy. Even though George Osborne's budget was fairly well-received within the city it seems that the reality of the UK economic situation is only now starting to hit home with many people and so...
Read MoreUK Treasury lends £100 million to Landsbanki
After the big political spat at the weekend it has been revealed that the UK government has agreed to lend £100 million to Iceland's Landsbanki in a move which should see UK depositors receive some form of compensation. The loan is secured against the assets of the group held in the UK and while there are hopes that this is a major breakthrough, nothing is guaranteed.
The UK gover...