UK population projected to grow at slower rate before falling in mid-2050s

Maike Currie, vice president of personal finance at PensionBee, said: “The UK’s demographic dividend is turning into a deepening demographic drag.

“From mid-2026, deaths will outnumber births, leaving 450,000 more deaths than births by 2034. Population growth now relies entirely on migration.

“The age shift is stark: between mid-2024 and mid-2034, the number of people of pensionable age is set to rise by 1.8 million to 14.2 million – that’s around one in five of the population, taking into account the planned increase in the State Pension age to 67.

“Meanwhile, over the same period, the number of children is expected to fall from 12.6 million to 11 million – making up just 15.5 per cent of the population by mid-2034.

“For the pension system, this means fewer future workers supporting more retirees. With earlier figures showing a third of those leaving the UK, aged 16 to 34, the pension system faces a double hit: fewer contributors and more retirees, putting real strain on the State Pension and long-term investment flows.”