Is immigration the answer to the UK’s pension crisis?

As a result of population ageing and declining fertility, the UK state pension system is unlikely to remain viable without a steady inflow of young immigrant workers from abroad. Using plausible assumptions we show that up to 500,000 immigrant workers pa. will be needed to save the state pension system. Other things equal, a positive annual net inflow of immigrant workers is required whenever: * the real growth rate in pensions exceeds 2.5% pa. * the number of retirees exceeds 660,000 pa. * the number of deaths falls below 570,000 pa. * the real growth rate in wages is below 1.5% pa * the number of births is below 590,000 pa. This article is based on written evidence presented to the House of Lords Economic Affairs Committee of Enquiry into ‘Aspects of the Economics of Ageing’ on 2 February 2003, 11 March 2003 and 4 April 2003