By 2070, males born in Ireland will be expected to live 22 years longer than they would have in 1951, while females would be expected to live 23 years longer.

Earlier this month, the Department of Finance released a report which suggested that the best way to deal with the pensions timebomb was to link the state pension age to life expectancy.

The report was not greeted with enthusiasm. Political pressure after the last election forced a deferral of the planned increase in the pensions age from 66 to 67. With the publication of this report, however, we can expect the debate to heat up again.

‘Population Ageing and the Public Finances in Ireland’ pointed out that we’re all living much longer than we used to. Males born today are expected to live 17 years longer than those born in 1951, while females are expected to live 18 years longer. By 2070, males born in Ireland will be expected to live 22 years longer than they would have in 1951, while females would be expected to live 23 years longer. Alongside that, the birth rate is falling.

Projections suggest the Irish population will reach 6.5 million by 2070. The population aged 65 and over is set to grow significantly faster than the working-age population, however. The report says that Ireland’s old-age dependency ratio is set to nearly double over the next 30 years, increasing from 24% at present to 47% by the middle of this century.

To put it another way, there are currently around four people of working age for every person aged 65 and over. By 2050, the equivalent figure will be half that.

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