The dangers of our ageing population We are not so much living in an age of crisis as facing a crisis of age. Its latest manifestation was the warning from the International Monetary Fund that demographic pressures will impose unexpectedly onerous financial burdens on industrialised countries. For Britain, the IMF calculated that on the "not unreasonable" assumption that the entire cost would fall on taxpayers, the country's public debt would rise from 76 per cent of gross domestic product to as much as 135 per cent - or £750 billion at today's prices. This is clearly unsustainable and has not been planned for, not least because we have persistently underestimated the speed with which average lifespans are rising. As a result, government pension policies - which are difficult enough as it is to frame - tend to lag three years behind the demographic reality. By any historical standard, the rapid ageing of the population represents a great economic and social transformation. There are more people over 65 than under 16. In future, the numbers aged over 65 will be far greater than now, and whereas until fairly recently four people of working age supported every pensioner, that ratio is set to decline dramatically. It is a good thing that people live longer and do, by and large, stay healthy and fit well into old age. But the implications are enormous; and while the Government is addressing some of the issues that arise, there is none of the urgency that is needed. If nothing is done, age-related spending, particularly on health care and pensions, will start to increase very significantly from the mid 2020s, but tax revenues will not be growing to match. To be fair, the Government is not oblivious to the dangers. As Steve Webb, the Minister for Pensions, explained in this newspaper on Monday, private sector pensions have had to adjust to the new realities, with most closing down final salary schemes. But more is needed. Management fees must be controlled because they erode the value of private pensions and discourage people from saving; and without adequate savings, many will face a penurious old age with little state support to fall back on. In addition, public sector pensions must come into line with those in the private sector, to release more money for people to provide for themselves. It is hard to believe that the teachers" unions, among others, are still threatening to strike over pensions, despite being offered a generous deal. It will also be necessary automatically to link the state pension age to life expectancy and to publish regular actuarial calculations of where the dates might fall. This would reintroduce a small element of certainty into what is otherwise a very uncertain future.