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The first wave of retiring ‘baby boomers' look set to ‘force dramatic changes' in government services and tax systems, a Deloitte report has claimed. Deloitte's Serving the ageing citizen, released this week, states governments worldwide will have to look again at how they provide services to the ageing global population, and how they will continue to be funded. This echoes concerns raised by councils across the country, which have claimed they are under increasing pressure to provide funding for services to this ageing population. Factors to blame include an ever-growing pressure on councils following cost shunting from primary care trusts facing funding black holes. By 2011 the first wave of the baby boom generation will reach retirement age, significantly affecting a broad set of government programmes and services, the report states. ‘As the population and workforce ages, the Government will have to examine how the growing number of older people will impact on the design and mix of services it offers, the funding sources it relies on, and the delivery arrangements it uses to provide services to its people,' Deloitte's public sector partner Rebecca George explained. Serving the ageing citizen predicts four trends will become more prominent in coming decades to deal with the squeeze on funding. A tax system modernisation, reducing dependence on personal income tax revenues; a rise in the average retirement age; increased reliance on user fees; and a growth of public-private partnerships. ‘The sooner the Government can come to terms with the emerging and rapidly-approaching challenges posed by an ageing population, the more options it will have to sustain delivery service,' said report author, William Eggers.

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FINANCE

Report warns of age timebomb

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