EU pension timebomb ticks as population ages

BRUSSELS (Reuters) - The European Union's population is set to reach 506 million by 2060 when there will be only two people of working age for every person aged 65 or more, the EU statistical office said on Tuesday.

Policymakers are bracing themselves for a big rise in the number of pensioners putting a strain on public finances as people live longer and there are proportionately fewer people of working age, even with net migration.

Currently there four people of working age for every person of 65 or more.

The combined population of the 27-nation area will peak in 2035 at 521 million, compared with 495 million in January this year, with deaths outnumbering births from 2015, Eurostat said.

The strongest population growth will be in Cyprus, up 66 percent by 2060, Ireland, up 53 percent, Luxembourg, up 52 percent, and Britain, up 25 percent.

Britain will overtake Germany by 2060 to become the EU's most populous state with 76.6 million citizens, up from 61 million at present. Germany's population is expected to fall to 70.7 million by 2060 from 82 million in January this year.

From 2035, even positive net migration will no longer counterbalance the negative impact of fewer births, Eurostat said.

Countries with the highest percentage of people aged 65 or more by 2060 will include Bulgaria, Czech Republic, Latvia, Lithuania, Poland, Romania, Slovenia and Slovakia.

(Reporting by Huw Jones, editing by Giles Elgood)