Mike Morrison, head of pensions development, AXA Wealth, comments on the Department for Work and Pensions’ Attitudes to Age in Britain report.
“Even our most infamous rock stars are now at retirement age – David Bowie turned 65 this week. When someone this ‘cool’ turns 65 it really makes you start thinking about what we perceive as old age.
“Last week the DWP’s Attitudes to Age in Britain report found that the perception of when old age begins varies depending on how old you are, with those under 25 believing that old age starts as early as 54. With the average life expectancy in the UK increasing (currently 78.2 years for men and 82.3 years for women), a rapidly ageing population is likely to have a profound effect not only on how we regard older people but how we prepare for living longer.
“There have been a number of measures introduced to address the longevity crisis that we face – the State Pension Age is increasing, as are the retirement ages for public sector pension schemes and the default retirement age has been abolished, which means employers can no longer force people to retire because of their age. So the infrastructure is changing, but what must also change is our attitude to old age, retirement and the world of work.
“Changing people’s perception of old age will not be easy, but is important. Recent DWP figures showed that only 38% of private sector employees are saving for their retirement and other research this week has shown that the average retiree has an average income of £15,500 in 2012. These changes will highlight that it will be increasingly difficult to rely on the state for assistance and that private pension savings will be absolutely vital.”
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