Is an ageing population the major threat to the UK economy?
Over the last few days the headlines regarding the UK economy have been fairly negative with an expected impact from the problems within the euro zone. However, more and more analysts and economic advisers are suggesting that the ever ageing UK population is the one major threat to the prosperity of the country in the medium to longer term. So how can this be?
The problem with an ageing population is that medical costs, pension costs and other benefit costs will balloon in the future. Despite the fact that more and more people are working beyond their retirement age this is something of a double edge sword because it does effectively reduce employment opportunities for those leaving school and further education. When you also consider the enormous pension funding problem within the UK, with the state pension under pressure and the final salary pension scheme in its last throes of life in the private sector, there really are some major issues to consider in the long term.
One problem which any government will have here is that voters want to see action now and planning for the future may well include short-term pain which will not be appreciated in the run-up to the general election. However, no matter how difficult the short-term situation may become we need to look at the longer term as significant funding shortfalls become more and more apparent.
Share this..
Related stories
It is the increase in UK property prices happening across the board?
While a number of recent surveys have suggested that UK property prices continue to increase it is becoming more and more apparent that price performances in different areas of the country can differ wildly. As ever, it is the South of the UK which is seeing the largest increase in property prices although there are a number of "hotspots" in the Midlands, the North and Scotland. The truth is th...
Read MoreSo Mr Osborne is the devil in the detail?
Despite opening his budget speech yesterday with a promise to be transparent and up front about all changes it would appear that George Osborne has quietly lowered the threshold at which the 40% income tax rate kicks in. It is now estimated that 700,000 more people in the UK will be dragged into the 40% tax band and see their income tax bills increase for the foreseeable future. On the surface...
Read MoreUK stock market finishes year on a high
The UK stock market is pushing ahead this morning and is now within reaching distance of the 2009 high. This comes at a time when concerns about the UK economy and the US economy have reappeared but at this moment in time very few investors seem to be overly concerned. However, it is worth noting that while the UK is likely to move out of recession in the short term, there is a feeling that the US...
Read MoreThe BP oil leak is officially over
The US authorities have today officially confirmed that the BP Gulf of Mexico oil leak is now over after 152 days. It is believed that around 5 million barrels of oil leaked into the Gulf of Mexico causing one of the largest natural disasters in recent times. The impact upon the BP share price has been as dramatic with the company suffering from a financial point of view as well as a reputation po...
Read MoreMortgage defaults continue to fall in UK
The Bank of England has today issued a report confirming that mortgage defaults and loan defaults from the business arena are continuing to fall, following the trend in the mortgage market which began last year. The latest report covers the period from April 2010 to June 2010 and has proven to be very encouraging in relation to the UK economic situation. However, what can we expect in the future?...
Read More