This generation is enjoying longer lives and longer periods of retirement than any of its predecessors. But these big changes also create a number of significant challenges, especially to the government's fiscal position through higher costs of state pensions, health and long-term care. This challenge is compounded in the UK (and other advanced economies) by the retirement of the baby-boom generation during the next two decades.
An attractive option to offset part of the fiscal cost of an ageing population is to raise the State Pension Age (SPA), which would both reduce state pension spending and boost tax revenues as some people choose to work longer as a result. This publication sets out the opportunities and challenges presented by extending working lives, together with an agenda of action for government, employers, employee representatives and financial services providers.