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Economic opportunities and challenges of ageing

Download a PDF version of these pages: Economic opportunities and challenges of ageing (PDF, 52 Kb)  

Introduction

In May 2010 the Government launched a discussion paper, 'Is business ready for an ageing nation? Economic opportunities and challenges of ageing'.

Since then there has been a high level of engagement from stakeholders, including written responses and many discussions with officials. This culminated in a speech by David Willetts at the launch of the International Longevity Centre’s research paper for AGE UK, The Golden Economy (PDF), in November 2010.

It’s clear there are many initiatives in the public and private sector that are attempting to address the questions posed by demographic change.

We want to understand the issues and opportunities raised by an ageing population. We’re interested in new thinking, and we want to hear your views.

Summary and conclusion

A wide range of individuals and organisations contributed views and evidence. These contributions painted a picture of a growing population of older people with an important part to play in the UK economy.

Two clear themes emerged from the responses to our discussion paper:

  1. A successful UK economy will in future depend on the skills and contributions of older people in the workforce

  2. Older consumers offer a significant and growing market for goods and services.


The number of people aged 65 and over in the UK is projected to increase from 16 per cent of the population in 2008 to 23 per cent in 2033 [1] , providing a growing share of demand in the UK and the rest of the developed world. How government and businesses respond to these trends will help determine how successfully our economy performs in the coming years and decades.

Many in government, business and civil society are already taking active steps to respond to these challenges. But there are barriers to overcome: ageism, stereotyping, and inflexibility. If not addressed, these obstacles could affect the UK’s ability to capitalise on the economic opportunities presented by an ageing population. There is therefore plenty to do - by businesses as employers or through trade, and by government as a regulator and provider of services.

Further information on issues raised during the project.

Footnotes

1. UN World Population prospects (2008 revision) (PDF)