US - The number of US citizens aged 65 and over is expected to double within 25 years, but the number of US males over 65 in the workforce has declined from 46% in 1950 to just 19% in 2003, according to a US Census Bureau report.
That ageing population is likely to place a heavy burden on the government as social security remained the largest provider of income for many older Americans, according to the ‘65+ in the US: 2005’ report.
The PBGC, the US federal pension insurer, already has a deficit of around US$23bn, a figure that had more than doubled in recent years. The report found the US population aged 65 and over was likely to account for almost 20% of the total population by 2030, while the 85 and older age group was now the fastest growing segment.
The financial circumstances of older people had also improved dramatically, with the proportion of people aged 65 and older in poverty dropping from 35% in 1959 to only 10% in 2003, mostly attributed to the support of social security, said Census Bureau director Louis Kincannon.
“The social and economic implications of an ageing population — and of the baby boom in particular — are likely to be profound for both individuals and society,” he said.
“The 65+ in the United States report helps us to understand these dramatic changes so we can examine how they may impact families and society.”
By Damian Clarkson
Trustees lack expertise, time and resources to develop effective communications on technical pensions issues and need professional help, a major review of the British Steel saga has concluded.
In this week's Pensions Buzz, we want to know if you think trustees should consult directly with members before agreeing to a DB superfund buyout.
Thousands of savers taking tax-free lump sums ahead of retirement are at risk of a pensions shortfall in later life due to neglecting their remaining pot, Zurich has warned.
Professional Pensions is looking to update its list of pensions master trusts in the UK ahead of authorisation. Can you help?