Dramatic rise in pensioners

When the country is celebrating the Olympics in 2012, baby boomers will be turning 65 in record numbers.

Over 800,000 of them - a staggering 150,000 more than in 2011 - will reach this key milestone. This massive increase corresponds to the post-war spike in births in 1946 and 1947, and presents a challenge for the Government as many of those turning 65 will also start claiming their state pension.

Since the first of the baby boomer generation started to draw their pension at age 60 in 2005/06, DWP spending on people over working age has risen by almost £14 billion.  By 2012 spending will have risen by nearly another £4 billion.

Pensions Minister Steve Webb visited older workers at Marks & Spencer in Liverpool today. He said: "People are now living longer, healthier lives and most 65-year-olds can expect to live until their late 80s. State Pensions need to reflect this and we need to make sure that the system is sustainable in the face of increasing longevity.

"We also want to make sure that where older workers want to keep working, they don't find themselves pushed out of the workplace or experience age discrimination."

With the latest research showing that many people can expect to spend around 20 years in retirement, the Government is currently looking into bringing forward increases to the state pension age. It also wants to ensure that older workers who want to keep working are able to do so, by phasing out the Default Retirement Age.

The three urban areas that will see the greatest increase in 65-year-olds over the next two years are Aberdeen (33%), Hull (30%) and Kingston upon Thames (26%).