The number of people over state pension age (SPA) is projected to rise by 13.8 per cent, from 12 million in 2022 to 13.7 million in 2032, despite the increase in the SPA to 67 from 2028, according to figures from the Office for National Statistics (ONS).  

The data also found that the number of people aged 85 years and over was 1.7 million in 2022 but is predicted to double to 3.3 million by 2047 – making up 4.3 per cent of the population.

In addition to this, by mid-2047, the number of people of pensionable age is projected to increase by 25.5 per cent, to 15.1 million.

ONS said that the percentage of people of pensionable age is projected to grow the most of any life stage between mid-2022 and mid-2047.

Despite the figures suggesting that the number of UK births and deaths will equal each other at 6.8 million, the population is still projected to grow to 72.5 million people by 2032 due to net migration of 4.9 million people.

AJ Bell suggested that this population increase could help “bolster” the ratio of the number of working people to pensioners.

AJ Bell head of public policy, Rachel Vahey, emphasised the importance of both the size and make-up of the UK population in relation to pensions.

She stated that there is an ageing population, with the 1960s Baby Boomer generation now reaching state retirement age, increasing the number of UK pensioners by a “whopping” 14 per cent over the next 10 years.

“Whilst more people living longer should be something to be celebrated, a growing pensioner population puts more pressure on public finances to fund state pensions and provide care in older age,” Vahey continued.

“The ratio of working people to pensioners has to at least remain stable to make sure sufficient taxes are rolling in to help pay for these burgeoning costs. But with a falling birth rate, that ratio looks fragile.

“The ONS figures point to an increase in migration to help steady that ship.”

However, Vahey said that a “swell” in the working-age population should help ease some financial pressure but argued that it would not completely solve the problem.

She stated that the UK needs a “frank and open” discussion about pensioners’ income in later life, instead of “kicking conversations about the state pension down the road”.

In particular, Vahey said there needed to be a “full debate” on how much the state pension should be, when it should be paid, and how it should increase yearly.

However, she emphasised that this was wider than state pensions.

“The government has already shelved its promised review of UK pensions adequacy,” she said.

“It now needs to kick that back into action to examine if the UK is on course to be able to finance itself in old age.

“These figures make it clear there isn’t time to spare by putting this on the back burner.

“Making significant changes will take time, so we need to tackle these challenges today.”

---