Pensioners 'worth £2bn'

The economic study challenges the view of the over-65s as being a cost rather than a benefit.

Commissioned by the WRVS charity, the new research puts a value of almost 1 billion on the voluntary work that pensioners carried out in Scotland last year.

The taxes they pay, the money they spend, the donations they make to charities and their families, and the contribution towards childcare take the total to 2.2bn.

And even with the cost of health care for increasing numbers of older people factored in, there was still a net financial benefit, the report claims.

Not only that, with the numbers of older people growing annually, the benefits will only increase over time. By 2030, the over-65s will have contributed an estimated 53bn to the Scottish economy, the study maintains.

That will bring a 79 per cent rise in receipts to the Treasury from this section of the population - greater than the rate of overall population growth at 57 per cent.

The study was undertaken by independent economists SQW, and academics at Newcastle University and Cardiff Business School.

Margaret Paterson, the head of WRVS Services Scotland, said society often overlooked the contribution of older people. "Their contribution often gets overshadowed by the negative attention given to the costs of future welfare in an ageing population," she said.

"Not only have we shown that the over-65s' financial contribution is huge and rising, we've also uncovered the crucial community roles that many of our pensioners are playing in society.

"Without their contribution there would be a significant impact on our society and it would be nice to have a culture shift in our perception of older people."

Stephen Lucas, the SQW's economist, said: "During the next 20 years, the over-65s population is set to increase from 881,000 to 1,341,000 in Scotland.

"The baby-boom generation is hitting 65 from this year onwards and healthy life expectancy has never been greater.

"The implications of an ageing population have been extensively explored, but is the assumption that older people represent a net cost to society accurate?

"Our findings refute these assumptions and provide a positive and healthy perspective for the age debate."

Professor Tom Kirkwood, the director of Newcastle University's Institute for Ageing and Health, said society was still stuck with the mistaken view that older people are a burden.

"This factual analysis by WRVS shows the opposite to be the case," he said. "Older people more than pay their way on current reckoning. And if we can only open our minds to the additional potential of a world in which we all live longer, and stop sidelining the mental capital of our older fellow citizens, how very much more will become possible."

However, some academics warned the increasing number of older people would still cause financial problems in future.

John McLaren of the Centre for Public Policy for Regions, at Glasgow University, said: "In some senses this study is correct.

"A lot of people who are reaching retirement have significant pensions and therefore still have purchasing power.

"However, our system is one where those working now pay for those who have already retired. That works when you have a ration of two working for every retired person but if that moves towards 50:50 then it becomes a problem.

"Then working people have to work more to keep the same standard of living and that's already being looked at in proposals to increase the retirement age."

Professor Richard Kerley, an expert on public services at Queen Margaret University in Edinburgh, said the study supported his opposition to cutting free personal care and bus travel for the over-65s as these measures kept older people active.

However, he added: "The overall figures used in the report are based on some long term assumptions - taking us up to 2030 - that may not be as solid as projections as the report asserts they are.

"It may also be something of a double-edged sword for campaigners for older people: if they contribute so much and generate so much benefit financially, is it time to look again at the age point at which benefit eligibilities commence, as we are doing now with the state pension?"

Community asset: John Ross, 83

One mature citizen who is certainly playing his part is John Ross, 83, from Inverurie, who first became involved in the WRVS Meals on Wheels service after retiring from his job as a salesman.

Since then he has become involved in several of the organisations other services, including being a community transport driver, taking people to the library and becoming a bus escort.

He also volunteers for a local stroke charity, taking people to meetings, exercise classes, bingo sessions and on shopping trips.

He said: "For me volunteering is a two-way relationship.

"As well as providing company and friendship to the people I meet, it gives me a huge amount of personal satisfaction, which is why I get so much out of it."