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The Grey Challenge

Charles Bennett

- Population of 65+ has grown is growing, leaving to the greying of British society.- The country is very dependent on the working class.

o Measured by the dependency ratio.- Dependency ration = (population under 16) + (population over 65) / (population 15-64) x 100

o It is rising in the UK as the number of retired people increases (although a fall in thebirth rate means that it is not rising fast).

Economic costs

- Financial provision must be made for the day to day living expenses of the elderly, as wellas for health treatment and housing costs.

- By 2026, when the 1960s baby boom generation reaches retirement age, this will amount to30 billion pounds per year.

- Local council taxes will become higher because of the high proportion of elderly people.- Many people move to coastal areas.

o Housing shortages due to people living in houses longer as a result of a higher higherlife expectancy.

Responsibility and care

- In additional to financial costs of an ageing population, rising longevity is placing anemotional burden on younger and middle-aged people who act as (unpaid) carers for older

relatives.

o Fewer people die in their sixties / seventies and more in their eighties / nineties dueto improvements in medicine.

How retired people get income.

The state pension. This is auniversal entitlement that is

available to everyone, whatever

the income. Introduced in 1946.

Entitled a weekly state pension

upon retirement.

Other state benefits. Housing costs

are paid to those pensioners with

no savings. Free tv licenses to over

75s. 200 winter fuel allowance is

provided to the elderly.

Company and personal pensions.

Some companies continue to pay a

retiring employee a proportion of

their final salary. Personal

pensions can built up by voluntary

savings.

Continued employment. Many

elderly people continue to work

and therefore are able to get

their own salar .

Other investments. They can

borrow money from banks if theyhave a house. The bank reclaims

the money when they die from the

sale of the house. This is called

equity release. Also investments

include shares and stocks.

Family support. Children may

provide financial support to their

aged parents in poorer families.

Vicer versa.

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Benefits of greying population

- Elderly people make a range of contributions to society;o Voluntary charitable worko Spending money on goods and serviceso Earning money and paying taxo Bringing wisdom and experience to the worlds of politics and commerce.

Global Greying.

- Set to go global in the future as it is thought that many more countries will face the samedemographic problems as the UK.

- Most OCED nations now have an ageing population e.g. South Korea.- In 2047, it is thought that there will be more people over 65 than younger than 15 in the

world for the first time ever.