Rush of babies born to couples reunited after war increases number of people reaching retirement age by 150,000
The number of postwar baby boomers reaching retirement age in 2012 will rise by 150,000, the government said today. A rush of babies born in the latter half of 1946 and 1947 to couples reunited after the second world war has increased the expected figure for over-65s to 800,000 from 650,000 this year.
The figures from the Department of Work and Pensions are likely to spur the heated debate over the rising costs of providing healthcare and pensions to the growing army of retired boomers.
Several books in recent months have pointed the finger at the baby boomers, or at least the middle and upper income members of the group, as chief culprits for everything from the financial crisis to sky-high house prices that deny younger people a chance to get on the property ladder.
David Willetts, the universities minister, has accused boomers of accumulating vast assets at the expense of their children and grandchildren in his book The Pinch.
Pensions minister Steve Webb said the state pension bill would rise by £4bn in addition to the £14bn increase in annual spending since 2006.
The spike in retirements comes after a steady rise in the number of people living longer and claiming a state pension. Almost 12 million people are retired in the UK, a figure that is due to rise to more than 15 million by 2030.
Since 2000, the UK's spending on pensions has risen from around 10% of national income to 12%, split evenly between the cost of the basic state pension and top-up pension benefits for the poorest.
A largely privatised pension system, which leaves much pension provision to employers, was the envy of most developed countries until the stock market crash of 2000, which has left most funds in deficit.
The previous administration reacted to the pensions crisis by offering to link the state pension to earnings from 2012. This move was offset by an increase in the state retirement age to 68 by 2040.
A review by the coalition is expected to bring forward moves to raise the retirement age and scrap a plan by the previous Labour administration to automatically enrol up to 10 million workers into a new employer pension.
Webb, a Lib Dem, said: 'People are now living longer, healthier lives and most 65-year-olds can expect to live until their late 80s. … State pensions need to reflect this and we need to make sure that the system is sustainable in the face of increasing longevity.
'We also want to make sure that where older workers want to keep working, they don't find themselves pushed out of the workplace or experience age discrimination.'
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