27 November 2007

Mike O'Brien

Minister of State for Pensions Reform

Sure start to later life

Tuesday 27 November 2007

[Check against delivery]

Sure start to later life

Introduction

Getting older should be the start of a new road, not the end of the road. Older people contribute a great deal to our society. Many act as carers, volunteers or are part of the workforce. And we should seek to maximise these contributions.

Over the next 50 years we will see unprecedented demographic changes in our society.

This year, for the first time, there are more pensioners than children in Britain.

And these changes are set to continue.

So as older people become an ever more significant proportion of the population, we will increasingly depend upon the contributions they make.

We need to ensure older people are able to play an ever greater role in our society.

To create a culture of older participation.

So the good news is we are all living longer.

Today there around 10,000 people aged over 100 but by 2050 it is predicted there will be 250,000 Centenarians.

That means that if the eldery King William V is still on the throne in 2050, he will be sending nearly 700 telegrams a day!

In fact, during the last century average life expectancy increased by 2 years a decade on average.

This is about 15 minutes every hour … on average.

Which means that by the time I sit down, your life may have extended by around 4 minutes!

… so I don’t mind you looking at your watches
… but do mind if you shake them to see if they’ve stopped working.

Ageing – opportunities and challenges

That we are all living longer is one of the wonders of the modern age. And it presents us many opportunities but also with challenges.

As a society we must:

• ensure a long life is a healthy and fulfilling life
• unlock potential for older people to play an even greater role in our society, and
• explode the myth that ageing is a barrier to a positive contribution to our economy and society through work and active engagement in society.

Many older people are living healthier lives.

But as our older population increases, so too will illnesses associated with ageing.

Dementia is estimated to increase by as much as 150 per cent by mid century.

So we must ensure support services are geared to the diverse needs of older people.

And we must place older people at the heart of those services.

Old age must also be seen as an active time.

Many older people are making a full contribution to society:

• one million older people are in employment
• many more contribute through caring or volunteering.

For example, one in three children whose mother works are looked after by a grandparent at least once a week.

But for all this, there are still many barriers faced by older people. We must as a society change mindsets towards older people and retirement.

Banish stereotypes and remove barriers that prevent older people contributing fully to our society.

So we have to ensure we adapt to our ageing society.

These are issues that cut across the whole of society.

And this Government recognises the importance of taking steps now to ensure we adapt to these changes.

For today’s pensioners. And for tomorrow’s pensioners.

This is why we launched our “Opportunity age strategy” in March 2005. The first ever cross-Governmental strategy specifically focussed on the issues we as a society face as people live longer.

And this is why, this year in the Comprehensive Spending Review, we set our vision out further. Launching a Public Service Agreement to:

“Tackle poverty and promote greater independence and well-being in later life.”

Placing the needs of older people at the heart of the Government’s programme of action.

Achievements to date

Let’s focus briefly on what we have achieved so far:

This year we are spending £76 billion on today’s pensioners, that’s more than we spend on our schools.

On average, pensioners are better off.

For the first time, a pensioner is no more likely to be poor than anyone else in society.

Initiatives such as pension credit have lifted 2 million out of absolute poverty.

One million fewer live in sub-standard homes.

In health care, waiting times are shorter.

And targeted benefits such as Winter Fuel Allowance, Warm Front and free local transport, have helped to address issues such as fuel poverty and mobility.

We have simplified the state pension, making it more generous – so people will get more but retire later.

This reform will also tackle gender inequalities. By 2025, 90 per cent of women will retire on the full state pension, up from only 35 per cent today.

For tomorrow’s pensioners, I will be introducing legislation in December that will enable everyone to have the change to save in an occupational pension.

As the Turner commission explained, we are living longer, but we need to pay for it.

So from 2012, every employee will be automatically enrolled in an occupational saving scheme.

Contributions from the individual will be matched with those from the employer and the state, through tax relief.

We estimate this will see up to 9 million people saving more or for the first time.

This is a massive transformation.

It will allow many to have a better retirement.

But we recognise there is more to do

We want to help people meet their aspirations for better later lives. And we want to improve the lives of today’s pensioners.

But it is not just about income – though that’s an important part of the equation. It is also about improving services for older people.

And it’s also about recognising and using the skills and experience of older people.

And we want to encourage older people to fully participate in our society:

• by encouraging longer working and targeting training that is tailored to their needs
• providing volunteering opportunities
• supporting those who have caring responsibilities
• tackling age discrimination, and
• changing people’s perceptions of old age.

These responsibilities do not just fall on the state. But also on the individual and society as a whole.

So what are we doing?

Since 2006, we have been piloting LinkAge Plus.

This builds on experience of joint teams. Alternative offices, and the Pension Service’s Partnership fund, expanding on the principles of joined up working.

These pilots give life to our vision for local services that are responsible to local people’s needs.

They cover a wide range of topics that impact on the well being of older people.

As well as looking at benefits and health, these pilots encompass housing, transport, volunteering and even social activities.

• They place older people at the heart of their design and delivery.
• Focussing on older people’s needs and aspirations.
• Combating social exclusion, personal isolation and removing barriers to participation in society.
• Whilst also developing existing links between central government, local authorities and other organisations.

For example, in Gateshead, LinkAge Plus has been supporting ActivAge groups.

• Providing a range of activity and leisure opportunities from rambling to line dancing!
• Helping to build social contact and encourage exercise and well being…
• Improving the well being of 3,365 people (so far).
• Making a real difference to their lives.

And Geoff Ashton will speak in more detail about LinkAge Plus later in the programme.

We also seek to change society’s attitude towards older people.

To this end, we have launched “Generation Xperience”. Encompassing all those over 50 (myself included…!).

A brand that celebrates older people’s life, experience and the opportunities of old age. Breaking down barriers and changing stereotypes. So ageing is not seen as a time of increased dependency.

Far from it. It is one of activity and new challenges.

So the future is clear…

We recognise the diverse needs and aspirations of older people.

• The need to remove barriers to full participation in our society.
• The need to re-frame the debate on old age. So ageing is seen as a time of activity and fulfilment.
• The need to develop services that are tailored to the needs of older people.
• Ensuring independence and dignity in retirement.
• And the need to involve older people at all stages of the decision making process.

So that a long life is a healthy life. And a healthy life is a happy life. Full of stimulation and new challenges at every stage.

As we set out in our PSA, ageing strategy is at the heart of the Government’s priorities.

Conclusion

So longer lives are one of the miracles of the modern age.

But it is not enough to add new years to our lives.

We must also ensure that we add new life to those years.

Thank you.