ABSTRACT
Demographic change including increased longevity and a reduction in the birth rate within the UK and comparable EU countries are set to bring a number of challenges to us. While it is positive people are living longer, the economically active population (those aged 16 to 64 years) is set to reduce from 65% to 60% of the total population. Within the 50 to retirement age group, only 50% of individuals are still working one year before retirement age (National Statistics, 2005). At the time of this report, of workers over 50 years, 25% were working part-time and 17% were self-employed. Furthermore at this time there were 2.7 million people not working, 49% dependent on benefits, 9% with occupational pensions but 18% had retired involuntarily with limited choices or distorted incentives. There have been a number of government initiatives to improve this as the cost estimates ranged from £19-£31 billion without costing the human and social costs of poverty, inequality and ill health. Difficult questions have also arisen with regard to pension provision within the UK. Thus there is likely to be continued efforts made to extend working life and return individuals currently unemployed to the workplace.
