Individual Assignment – The Pensions Environment

Increasing longevity is placing severe strains on the pension system and forcing radical reform of pension’s structures in developed economies. Explain why longevity expectations are so important in pensions policy planning and illustrate the impact using examples (from changes in recent UK pension’s policy). To what extent are these changes in pension’s policy likely to improve the pension’s prospects of those workers currently in their 20’s and 30’s?
Introduction
Aging of the population in the world today are increasingly it became major social issue especially in developed countries. Increasing longevity gradually becomes one of constraint factors in pension system while forcing radical reform. It also concerned with national sustainable economic development. In this paper I will mainly explain the reasons longevity expectations influence the pension policy through recently changes of UK pension’s provision. Besides，I will according this changes to analyse the impact of UK pension’s policy transformation especially for young people in modern society. In doing so, the first part of this paper will attempt to illustrate the currently aging trends in UK, and then explain the reason and significance of longevity expectation in pension policy planning. The second part will focus on recent changesThe Assignment is provided by UK Assignment http://www.ukassignment.org  in pension’s policy in UK while analyse the function of reform and these improving pension prospects’ impact for different individuals. Finally, I will summarise the pension changes recently to draw a conclusion the significant of these transformations and the pension’s prospects for young people. The paper will begin by giving brief explanations of longevity trends in UK.
Part 1
The population of the UK is growing in size and becoming increasingly older. Ageing refers both to the ageing of the population and the increasing number of people reaching older age. The following chart shows the UK population age structure:

(Source from: UK National Statistics 2008)

The bar chart indicates the population of the UK is ageing. Over the last 25 years the percentage of the population aged 65 and over increased from 15 per cent in 1983 to 16 per cent in 2008, an increase of 1.5 million people in this age group. In 1983, there were just over 600,000 people in the UK aged 85 and over. Since then the numbers have more than doubled reaching 1.3 million in 2008. By 2033 the number of people aged 85 and over is projected to more than double again to reach 3.2 million, and to account for 5 per cent of the total population. As a result of these increases in the number of older people, the median age of the UK population is increasing. Over the past 25 years the median age increased from 35 years in 1983 to 39 in 2008. It is projected to continue to increase over the next 25 years rising to 40 by 2033. Pensions Policy Institute’s statistics point out 20% population will be over 65 by 2015 and increase to 26% till 2054. This Changes to mean the number of State pension age will remain at 19% to 2015 reach 21% by 2050. At present the biggest sector population from 30 to 39, but by 2050 the age will be change to 60 to 64 up to 16million people in total. On the other hand, Life expectancy for both men and women has continued to rise that means more aged 70 and 80 than ever before. By 2015, average life expectancy for a 65 year old will be male 85 and female 88 respectively; 本站提供指导Essay，指导Assignment，请联系QQ：949925041 by 2050 this will have risen to 89 and 92. Population ageing will bring a series of challenges to government and society. Compare with increasing life expectancy the healthy life expectancy less than it, so it Increased government expenditure on the#p#分页标题#e#

Reference：
OFFICE FOR NATIONAL STATISTICS,2009, Older People’s Day, [online]. Available from: http://www.statistics.gov.uk/pdfdir/age0909.pdf [accessed 29 February 2010].