According to a recent survey, the number of people working, as opposed to those in retirement will drastically reduce over the next 25 years. This could have drastic repercussions for the State pension and benefit systems. Currently, there are around 2.6 people working to each 1 that is retired. By 2029 the number working could fall to 2 to 1 and by 2059 it could be as low as 1.8 to 1.
Our View
These types of statistics keep coming out of the woodwork and should not be ignored. There has never been more solid evidence to make people believe they need to save for their financial futures. Pensioners are living longer and that means that any money built up for retirement will have to last longer. Do not ignore the fact that the State pension system could crumble under the weight of these figures.