The proposition The current debate about the ageing society makes the mistake of applying today s expectations and assumptions about older people onto tomorrow s numbers.
The proposition This often leads to very pessimistic predictions of a demographic time bomb in the form of unsustainable pressures on pensions and health systems.
The proposition However, in the UK the transfer of risk and responsibilities from the state to individuals has so far reduced the immediate danger.
The proposition Moreover, if we can find ways of influencing and harnessing baby boomers choices about retirement in a way that will make society a better place to be old for all, the new old have the potential to reframe and transcend a number of the most compelling challenges of an ageing society.
The proposition If we cannot, we risk creating a society in which some older people are able to exercise choice about their retirement, whilst many others can only look forward to a later life of financial insecurity and poor quality of life.
Ageing society 16 15 14 Population (millions) 13 12 11 10 9 8 Under 16 65+ 7 6 1981 1991 2001 2011 2021 2031 2041 Year Actual and projected population aged under 165 and over 65 in the UK, 1981-2041
Ageing society 90+ 80-84 MALES FEMALES 70-74 60-64 Age 50-54 40-44 2001 2031 30-34 20-24 10-14 0-4 (3,000) (2,000) (1,000) 0 1,000 2,000 3,000 Population numbers (thousands) Population projection pyramid for the UK, 2001-2031
Baby boomers Figure
Formative influences
Individualisation of risks and responsibilities in old age 1. Increasingly voluntaristic pension policy, where the state provides only a limited safety net and places the onus on individuals to provide their own security in retirement. 2. Separation of nursing and personal care and the state only funding the former.
Individualisation of risks and responsibilities in old age Public pension spending as a percentage of GDP in the UK is currently around 5 percent, and is projected to remain at a similar level over the next half century.
Individualisation of risks and responsibilities in old age According to the UK government up to 3 million people are seriously under-saving for their retirement and 5 to 10 million people should consider saving more.
Three core areas 1. Work and retirement 2. Communities and environment 3. Family and intergenerational relations
Work and retirement 69 percent of baby boomers are interested in undertaking learning activities in the future 78.5 percent of baby boomers agree strongly or tend to agree that although I enjoy my work, my private life is more important to me 66 percent of baby boomers agree strongly or tend to agree that if work interferes with my personal life, I would put it into second place
Work and retirement The challenge is to reframe our normal patterns of working life to make work a more attractive and conventional option for all retirees.
Work and retirement More than one quarter of baby boomers are currently in atypical forms of employment (self-employed or part-time) 50.5 percent of baby boomers say they would rather be a self-employed entrepreneur than a 9-5 employee
Communities and environment Baby boomers claim to belong to fewer social networks than either older or younger generations Only 33.5 percent of baby boomers agree that they are part of several networks of people who communicate and do things together, compared with 39 percent of older and 51.5 percent of younger generations. They are less interested and feel less of a sense of belonging to their neighbourhoods In surveys baby boomers correlated much more weakly with neighbourhood focus than older generations.
Communities and environment Baby boomers are less eager than older generations to participate in voluntary work While 39 percent of older generations supported the statement that everyone has a duty to voluntary work at some time in their lives, only 26.5 percent of baby boomer agreed.
Communities and environment The challenge is to understand the kind of public interventions and investments that might generate social capital.
Family and intergenerational relations Baby boomers have married later and less 32 percent of late baby boomers remained unmarried at the age of 30. Rising divorce rates From 30,977 in 1962 to 154,628 in 2000. More baby boomers are living solo Close to 50 percent of late baby boomers will be living solo by age 75. Baby boomers have fewer children later It is predicted that 21 per cent of late baby boomer women will remain childless.
Family and intergenerational relations Around two-thirds of care provided for older people continues to come from within the family.
Family and intergenerational relations The challenge is to recognise the impact of changing family structures and find ways of maximising the value of intergenerational transfers in both directions.
Julia Huber Researcher julia.huber@demos.co.uk 02074015479 www.demos.co.uk