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Explosion in 85 plus year olds set to put massive Long Term Care funding burden on workers and State – as Partnership reveals UK’s oldest councils now and in 2030

• Oldest councils transform into virtual retirement communities as life expectancy rises dramatically
• Over 85s, who are most likely to require long term care, to increase by 60% across UK
• For every 4 people working in 2030, in the oldest council areas, 3 will be retired
  Burden on future workforce to fund care, as under 16s fall to 2 for every person aged over 85 years in oldest councils
• Without proper financial advice the cost of people running out of funds early to meet their long term care costs and falling back on the state is set to nearly treble in England alone to £2.75 bn.

A MASSIVE explosion in the numbers of people living to 85 and beyond will put huge pressures on workers and State funding for the long term care of older people in the next 20 years, according to an investigation of Office of National Statistics (ONS) data* by retirement solutions specialist Partnership.

 Partnership’s investigation reveals the ‘oldest’ council authorities in the UK in 2010 and with projections for 2030, the anticipated dramatic increase in life expectancy means that the UK’s ‘oldest’ councils (see tables below) will be transformed into virtual retirement communities.

* Oldest Councils 2010 (1992 to 2008 figures based on Mid-Year Population Estimates) ONS

In the Oldest 10 council authorities in 2010 for every 2 people of working age there will be 1 person in retirement.

In these councils for every 4 people aged under 16 who will enter the workforce there is 1 person aged over 85. 

In 2010 Christchurch, in Dorset, is identified as the UK council with the oldest population, with 3 retired people for every 5 in work.  In Christchurch people aged over 85 currently make up 1 in 6 people in retirement.
Fast forward 20 years, and the table rankings change to:

East Devon, Tendring, Worthing and Eastbourne all drop out of the top 10, while new entrants for this ranking are: Berwick Upon Tweed, Malvern Hills, New Forest and East Dorset.
 
In 20 years’ time for every 4 people working in these councils, 3 people will be retired.

For the youngest and oldest the change is just as pronounced. 

Currently in the Top 10 elderly councils there is 1 person aged 85 and older for every 4 people aged under 16 – but in 2030 this will decline to 2 people aged under 16 for every 1 person over 85.

“This presents significant funding issues as there will be far fewer young people entering the working population to fund the retired population through direct taxation,” said Partnership’s Chris Horlick, Managing Director, Care.

“The impact of our ageing population on the oldest councils will be extreme. We must ensure that people are making sufficient provision for their long term care funding and that they receive qualified financial advice, “ he said.

“We estimate that the current cost of self funders (41% of the total number of residential care home residents who have more than £23,250 in assets including property) depleting capital prematurely and falling back on the State will nearly treble from £1bn in England alone to a staggering £2.7bn.

“We have based this prediction on a conservative inflation assumption of 2% - but this need not be the case if those people received proper financial advice to fund their care. Currently out of the 53,000 people annually who enter into residential care homes and have to pay for their care costs, only 7,000 receive appropriate financial advice,” said Horlick.

“The most significant impact will be among people aged over 85, who need most resource to fund domiciliary and residential care support, and who are now set to increase by over 60% in the next 20 years and people aged over 75 who will increase by around 70% in the same time period (source: Laing and Buisson 2009).

“The impact of the growing retirement population will be felt most keenly by the Top 10 oldest councils, where by 2030 for every 4 people working 3 will be retired,” added Horlick.

“This means that direct taxation and council tax will either have to rise or services to the elderly will have to reduce. Partnership’s average care annuitant is 87.

“The oldest who need most resource and care are a significant part of the retired population particularly when compared to the under 16s, who face an enormous burden to meet the costs of those people in retirement. The Government’s current Long Term Care Funding Commission could not be more timely!”
*Ageing in the UK, Office of National Statistics.
http://www.statistics.gov.uk/ageingintheuk/default.htm 

– Ends –

Media Enquiries:

Steve Groves,
CEO
07739 424098 / 07802 485632 / 0207 6182826
Partnership
celia.murton@partnership.co.uk

Rebecca Dwyer
Consultant       
0774 757 8617 / 01273 777144
David Andrews Media Ltd    
rebecca@davidandrewsmedia.co.uk

David Andrews
Senior Consultant – Director   
07941 255855 / 01273 777144
David Andrews Media Ltd 
david@davidandrewsmedia.co.uk

About Partnership:

Partnership is a specialist provider of financial solutions for people with health/ lifestyle conditions, as well as those suffering from a serious medical impairment. Partnership was the first company in the UK to offer higher retirement incomes by taking account of people’s health and lifestyle conditions. It has been a consistent innovator developing this sector by championing the needs of those with even modestly reduced life expectancies.

Partnership has led the way in providing products designed specifically for individuals whose health and lifestyle is likely to result in a reduced life expectancy. Partnership is expert in the field of medical underwriting and has a unique in-house data set. Partnership believes that its years of accumulated data and knowledge gives it a unique understanding of the impact of health and lifestyle choices on longevity. This, in turn, enables it to offer the most accurate assessment of a client’s life expectancy and therefore offer the fairest price to them.

Partnership has the most comprehensive offering in the retirement sector and offers a complete range of Enhanced Annuity solutions, from clients who smoke or have minor health impairments, through to serious conditions such as cancer.  Partnership is the largest provider of annuities for Long Term Care funding in the UK, with 80% of the market, and also offers specialist Protection solutions for clients who have been declined cover from standard providers. Partnership offers a firm commitment to supporting advisers in growing their business. 

Partnership was winner of the 'Long-term Care Provider' award at Health Insurance Awards 2009 and this year’s Simply Biz ‘Annuity Provider of the Year’ award.” www.partnership.co.uk

Partnership is a trading style of The Partnership Group of Companies, which includes Partnership Life Assurance Company Limited (registered in England and Wales No. 05465261), which is authorised and regulated by the Financial Services Authority.  Registered office: Sackville House, 143 – 149 Fenchurch Street, London EC3M 6BN.