National Population Projections and the challenges of an ageing population

30
National Population Projections and the challenges of an ageing population Helen Bray and Shayla Goldring ONS

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National Population Projections and the challenges of an ageing population. Helen Bray and Shayla Goldring ONS. National population projections - key points. Rising fertility, rising life expectancy and record levels of net migration Big increase in projected total population size - PowerPoint PPT Presentation

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Page 1: National Population Projections and the challenges of an ageing population

National Population Projections and the challenges of an ageing

population

Helen Bray and Shayla GoldringONS

Page 2: National Population Projections and the challenges of an ageing population

National population projections - key points

• Rising fertility, rising life expectancy and record levels of net migration

• Big increase in projected total population size

• Population ageing

Page 3: National Population Projections and the challenges of an ageing population

Data availability

• National population projections data remain on the GAD website:

www.gad.gov.uk

• Data to be moved to NS Online during 2008

Page 4: National Population Projections and the challenges of an ageing population

How are assumptions decided?

• Analysis of demographic trends

• Expert advisory panel

• Formal consultation

• Assumptions agreed by ONS and devolved administrations

Page 5: National Population Projections and the challenges of an ageing population

UK population 1951 - 2031

45

50

55

60

65

70

75

1951 1961 1971 1981 1991 2001 2011 2021 2031

Year

Mil

lio

ns

45

50

55

60

65

70

75

Projected

Page 6: National Population Projections and the challenges of an ageing population

UK population, 1951 - 2031

45

50

55

60

65

70

75

1951 1961 1971 1981 1991 2001 2011 2021 2031

Year

Mil

lio

ns

45

50

55

60

65

70

75

2004-based 2006-based

Projected

Page 7: National Population Projections and the challenges of an ageing population

Actual and projected TFR, UK, 1951 - 2031

1.50

1.75

2.00

2.25

2.50

2.75

3.00

1951 1961 1971 1981 1991 2001 2011 2021 2031

Year

Ch

ild

ren

per

wo

man

1.50

1.75

2.00

2.25

2.50

2.75

3.00

Replacement level

TFR

Assumed

Page 8: National Population Projections and the challenges of an ageing population

Period expectation of life at birth (EOLB), UK, 1981 - 2081

70

72

74

76

78

80

82

84

86

88

90

92

1981 1991 2001 2011 2021 2031 2041 2051 2061 2071 2081

Year

EO

LB

(ye

ars)

70

72

74

76

78

80

82

84

86

88

90

92

Males

Females

Assumptions

Page 9: National Population Projections and the challenges of an ageing population

Annual mortality improvement, 2006 - 2007

UK male/female comparison

-1

0

1

2

3

4

5

6

7

0 10 20 30 40 50 60 70 80 90

Age

Per

cen

tag

e re

du

ctio

n

Males

Females

Page 10: National Population Projections and the challenges of an ageing population

Period and cohort expectations of life at birth, UK, 1981 - 2056

70

72

74

76

78

80

82

84

86

88

90

92

94

96

98

100

1981 1991 2001 2011 2021 2031 2041 2051

Year (period)/Year of birth (cohort)

EO

LB

(ye

ars)

70

72

74

76

78

80

82

84

86

88

90

92

94

96

98

100

Males period

Females period

Males cohort

Females cohort

Page 11: National Population Projections and the challenges of an ageing population

Actual and projected net migration, UK, 1991 - 2031

-50

0

50

100

150

200

250

300

1991 1996 2001 2006 2011 2016 2021 2026 2031

Year

tho

us

an

ds

-50

0

50

100

150

200

250

300

Net migration

Page 12: National Population Projections and the challenges of an ageing population

Actual and projected UK births and deaths, 1951 - 2056

0.4

0.5

0.6

0.7

0.8

0.9

1.0

1.1

1951 1971 1991 2011 2031 2051

Year

Mil

lio

ns

0.4

0.5

0.6

0.7

0.8

0.9

1.0

1.1

Births

Deaths

Projected

Page 13: National Population Projections and the challenges of an ageing population

Projected components of UK population change, 1991 - 2031

-50

0

50

100

150

200

250

300

1991 1996 2001 2006 2011 2016 2021 2026 2031

Year

tho

us

an

ds

-50

0

50

100

150

200

250

300

Net migration

Natural change

Page 14: National Population Projections and the challenges of an ageing population

Total UK population, variant projections, 1996 - 2056

56

60

64

68

72

76

80

84

88

92

1996 2001 2006 2011 2016 2021 2026 2031 2036 2041 2046 2051 2056Year

Mil

lio

ns

56

60

64

68

72

76

80

84

88

92

Principal Mortality variantsMigration variants Fertility variants

High/Low combination variants

Projected

Page 15: National Population Projections and the challenges of an ageing population

UK population pyramid, 2006

500 400 300 200 100 0 100 200 300 400 500

0

10

20

30

40

50

60

70

80

90

100+

Ag

e

Population (thousands)

Males Females

Page 16: National Population Projections and the challenges of an ageing population

UK population pyramid, 2006 and 2031

500 400 300 200 100 0 100 200 300 400 500

0

10

20

30

40

50

60

70

80

90

100+

Ag

e

Population (thousands)

Males Females

2006 2031 2006 2031

Page 17: National Population Projections and the challenges of an ageing population

Projected elderly demographic support ratio, UK, 2006 - 2056

1.4

1.6

1.8

2.0

2.2

2.4

2.6

2.8

3.0

3.2

3.4

2006 2011 2016 2021 2026 2031 2036 2041 2046 2051 2056year

nu

mb

er o

f w

ork

ing

ag

e p

er p

erso

n o

f st

ate

pen

sio

n a

ge

1.4

1.6

1.8

2.0

2.2

2.4

2.6

2.8

3.0

3.2

3.4

with changes to SPA

no change to SPA

Page 18: National Population Projections and the challenges of an ageing population

Projected demographic support ratio, UK, 2006 - 2056

2.5

2.6

2.7

2.8

2.9

3.0

3.1

3.2

3.3

3.4

2006 2011 2016 2021 2026 2031 2036 2041 2046 2051 2056

year

nu

mb

er o

f w

ork

ing

ag

e p

er p

erso

n o

f st

ate

pen

sio

n a

ge

2.5

2.6

2.7

2.8

2.9

3.0

3.1

3.2

3.3

3.4

Principal

High migration

Low migration

Page 19: National Population Projections and the challenges of an ageing population

Percentage of the UK population aged 65 and over, variant projections, 1981 - 2056

14

16

18

20

22

24

26

28

30

1981 1991 2001 2011 2021 2031 2041 2051Year

Per

cen

tag

e

14

16

18

20

22

24

26

28

30

Principal Mortality variants

Fertility variants Migration variants

Old/Young combination variants

Projected

Page 20: National Population Projections and the challenges of an ageing population

Challenges of an ageing population - Outline

• Background

• Implications of population ageing

– Health– Social Services– Housing– Labour Force– Pensions– Well being

• Future work

Page 21: National Population Projections and the challenges of an ageing population

Background

Source: ONS: Censuses 1971-2001;

National Population Projections 2011-2031

Population age structure, UK

0%

20%

40%

60%

80%

100%

1971 1981 1991 2001 2011 2021 2031

Year

Percentage

85+

65-84

16-64

0-15

Page 22: National Population Projections and the challenges of an ageing population

Background

Percentage of populationaged 60 and over, 2004- 2031

Source: Eurostat 2004 based population projections

0 10 20 30 40

Ireland

Luxembourg

Sw eden

Denmark

Netherlands

UK

France

Belgium

Portugal

Finland

eu15

Greece

Austria

Spain

Germany

Italy

Cou

ntry

by

rank

ord

er in

203

1

Percentage

2031

2004

Page 23: National Population Projections and the challenges of an ageing population

Implications

Ageing will have an impact on the following areas:

– Health – increasing demand for GP and hospital care

– Social Services – increasing demand for long term care

– Housing – ‘new homes must cater for ageing’ 26/1/2008

– Labour force – increasing number of older workers

– Pensions – increasing state pensions bill

– Well being/social cohesion

..however, the size of the effects are interrelated with changing trends in living arrangements, partnership status and also policy intervention

Page 24: National Population Projections and the challenges of an ageing population

Living arrangements

Source: ONS: General Household Survey (Longitudinal)

People living alone, by sex and age: 1986/87 and 2005, Great Britain

Women

0 10 20 30 40 50 60 70

16–24

25–44

45–64

65–74

75 and over

Age

Percentages

1986/87

2005

Men

80 70 60 50 40 30 20 10 0

Percentages

1986/87

2005

Page 25: National Population Projections and the challenges of an ageing population

Partnership status

Source: ONS: 2003 based Marital Status Projections 2003-2031

Females aged 65 and over by partnership status, 2003-2031, England and Wales

0

2,000

4,000

6,000

8,000

Total Married Cohabiting Nevermarriedalone

Previouslymarriedalone

2003

2011

2021

2031

Page 26: National Population Projections and the challenges of an ageing population

Percentage of women with no children or only one child at age 45, by birth cohort, England and Wales

Source: ONS: Vital events registration data and General Household Survey data.

Completed family size

0

10

20

30

40

50

1920 1930 1940 1950 1960

Year of birth (woman)

Percentage

One child

Childless

Page 27: National Population Projections and the challenges of an ageing population

Employment

Average age of the working age population (16-SPA), 1971-2031, UK

Note: Includes changes to State Pension AgeSource: ONS: Mid-year population estimates, 1971-2006;National Population Projections 2011-2031

20

30

40

50

60

1971 1981 1991 2001 2011 2021 2031

Year

Age

Upper quartile Median Lower quartile

Page 28: National Population Projections and the challenges of an ageing population

Summary

• UK not ageing as fast as EU on average

• Still important to prepare for larger numbers and greater proportionate share of population at older ages in UK

• Need for more information and also co-ordinated and coherent reporting

Page 29: National Population Projections and the challenges of an ageing population

ONS Future work on ageing

• Quantifying the demographic drivers of ageing

• Inequalities in age at retirement

• How are trends in family formation and dissolution likely to affect the proportion of family members providing care?

Other parts of ONS

• How much are we saving for retirement? Are we saving enough?

• Health at older ages

Page 30: National Population Projections and the challenges of an ageing population

Contacts

• National projections and the ageing population

– NPP Branch – [email protected] – 020 7533 5294– or – [email protected] – 020 7533 5222

– Ageing Unit – [email protected] –01329 813212

– Morbidity and health care

- [email protected] – 01633 455865

– Pensions Analysis Unit

- [email protected]–01633 816198