Lord Hutton has just announced his proposals for the reform of public sector pensions. The proposals clearly demonstrate the impact of increasing longevity such that the extension to our lives has been calculated as an extra 5 hours for every day we live. This effectively means living 29 hours a day ie 24 now and 5 for the future. How we live our 24 hours today ie in terms of keeping fit and healthy will impact how we live our extra 5 hours in the future. And the cost of this is now having to be addressed due to the £30bn pension liability which means we all (not just the public sector) will have to pay more, work longer and receive less in retirement. We have to pay financially some how for our extra 5 hours a day.
While the public sector are losing their pensions linked to final salaries they are still retaining "defined benefits" even though this is changing to the lower "career average". This is still much better than the changes experienced by the private sector which has moved from "defined benefits" to "defined contributions" providing much more uncertainty for individuals in terms of what the market for annuity rates will be like at retirement age. The differential between public and private pensions still seems to have been maintained with the proposed reforms and we are now at last starting to address some of the very real issues of the ageing population.
Thursday, 10 March 2011
Monday, 7 March 2011
The over 65s for marketing
Just to reiterate a couple of points made in the Observer newspaper yesterday.
Will Hutton's piece about the most dynamic part of the labour market is the growth in employment of the over 65s with 104,000 of the 218,000 job growth going to the over 65s, much of this part-time.This may suggest that employers are still wanting to reap the benefits of the skills and experience of older workers and are prepared to offer flexible options to enable them to do this. As Will says, this will accelerate from April when there is no requirement to leave work at 65.
The there is Andrew Clark's comment about the annual spending in the UK of households which include someone over 65, which passed the £1bn mark in 2009.
This might suggest where the potential growth in our economy could be for businesses if you put these 2 points together,an increase in the number of peope working beyond 65 ie being economically active, and the spending power of people in their mid-60s- mid 70s (who spend a higher proportion of their budget on food and drink, housing, furniture and recreation, per Saga research). However, the 65-75 age group doesn't tend to be where most marketers focus.
Will Hutton's piece about the most dynamic part of the labour market is the growth in employment of the over 65s with 104,000 of the 218,000 job growth going to the over 65s, much of this part-time.This may suggest that employers are still wanting to reap the benefits of the skills and experience of older workers and are prepared to offer flexible options to enable them to do this. As Will says, this will accelerate from April when there is no requirement to leave work at 65.
The there is Andrew Clark's comment about the annual spending in the UK of households which include someone over 65, which passed the £1bn mark in 2009.
This might suggest where the potential growth in our economy could be for businesses if you put these 2 points together,an increase in the number of peope working beyond 65 ie being economically active, and the spending power of people in their mid-60s- mid 70s (who spend a higher proportion of their budget on food and drink, housing, furniture and recreation, per Saga research). However, the 65-75 age group doesn't tend to be where most marketers focus.
Friday, 4 March 2011
Hope for the future
There have been many negative issues trailed in the media in recent weeks about getting older. The fact that we're not saving enough for our old age, that we will have to work until 66 to get the state pension from 2020, and Saga's research into the overs 50s which shows that all the the measures of quality of life have declined in January compared to the previous year. In this survey, the 50-59 year olds are reported to be having the worst time, with happiness, health and living standards all falling (and no doubt concerns about having enough to live on in their old age preying on their minds in the run-up to retirement).
The age group with the smallest decline in well-being was reported to be the 65-69 year olds who were not as worried about their health as older age groups, or about their standard of living as younger. (This might suggest that they are the people for marketers to target).
It was therefore quite refreshing to hear some positive news this morning that there is a potential medical breakthrough in the battle against Alzheimers which could have significant impact on sufferers, possibly in the next 10 years. This is a reminder that the reasons why we are living longer, and having to face complex social and economic issues, are largely due to massive improvements in public health and medical achievements over the last few decades and that these deserve a bit more emphasis and attention.
The age group with the smallest decline in well-being was reported to be the 65-69 year olds who were not as worried about their health as older age groups, or about their standard of living as younger. (This might suggest that they are the people for marketers to target).
It was therefore quite refreshing to hear some positive news this morning that there is a potential medical breakthrough in the battle against Alzheimers which could have significant impact on sufferers, possibly in the next 10 years. This is a reminder that the reasons why we are living longer, and having to face complex social and economic issues, are largely due to massive improvements in public health and medical achievements over the last few decades and that these deserve a bit more emphasis and attention.
Thursday, 10 February 2011
Saving for Retirement
Aegon published its latest research into the savings market recently (entitled Effective Incentives for Savings)and the report reveals a lot of the complex issues about why people generally don't save enough for their older age. Apart from the general point that most/many financial services institutions are not trusted it reveals that there is a lot of negativity about pensions because they appear complex and the term "pensioner" is old fashioned and presumably conjures up a fairly stereotypical image in line with the "deficit" model and view of ageing.
While the report is really targeting the policy makers and suggests action that could be taken by government to improve the position, it clearly reveals consumer behaviour, not least that some research participants regretted leaving things too late with a preference for lifestyle today over lifestyle tomorrow.
A spokesman from the seemingly more lightweight piece of research from the Lloyds Group about new year resolutions,also stated "for many of us, saving is a bit like going to the gym, we know we should do it but we keep on putting it off".
It seems that one of the points in the Aegon's summary to increase the "focus on encouraging employers to engage with pension provision and maintain valuable employer contributions" is therefore well placed. Another aspect is that the cost to the employer of these incentives can be measured and countered in terms of improved competitive position through increased employee retention, enhanced reputation and improved social impact by their ex-employees having more income/better lives in their older age.
While the report is really targeting the policy makers and suggests action that could be taken by government to improve the position, it clearly reveals consumer behaviour, not least that some research participants regretted leaving things too late with a preference for lifestyle today over lifestyle tomorrow.
A spokesman from the seemingly more lightweight piece of research from the Lloyds Group about new year resolutions,also stated "for many of us, saving is a bit like going to the gym, we know we should do it but we keep on putting it off".
It seems that one of the points in the Aegon's summary to increase the "focus on encouraging employers to engage with pension provision and maintain valuable employer contributions" is therefore well placed. Another aspect is that the cost to the employer of these incentives can be measured and countered in terms of improved competitive position through increased employee retention, enhanced reputation and improved social impact by their ex-employees having more income/better lives in their older age.
Tuesday, 1 February 2011
One of the Positives of Ageing
This is taken from page 86 of Haruki Murakami's book entitled "what I talk about when I talk about running."
" My muscles can be as stubborn as -or more stubborn than-I am. They remember things and endure, and to some extent they improve. But they never compromise.They don't give up. This is my body, with all its limits and quirks. Just as with my face, even if I don't like it it's the only one I get, so I've got to make do. As I've grown older, I've naturally come to terms with this. You open the fridge and can make a nice- actually even a pretty smart- meal with the leftovers. All that's left is an apple, an onion,cheese and eggs, but you don't complain. You make do with what you have. As you age you learn even to be happy with what you have. That's one of the few good points of growing old".
" My muscles can be as stubborn as -or more stubborn than-I am. They remember things and endure, and to some extent they improve. But they never compromise.They don't give up. This is my body, with all its limits and quirks. Just as with my face, even if I don't like it it's the only one I get, so I've got to make do. As I've grown older, I've naturally come to terms with this. You open the fridge and can make a nice- actually even a pretty smart- meal with the leftovers. All that's left is an apple, an onion,cheese and eggs, but you don't complain. You make do with what you have. As you age you learn even to be happy with what you have. That's one of the few good points of growing old".
Thursday, 13 January 2011
2011: ageing population finally on the agenda
Today the Governments confirms that it is abolishing the default retirement age of 65 effectively from April this year. This means that older workers have more control over their later years although many will still want to retire when their pension, if they are lucky enough to have one, becomes available. The Government seems to have ignored the pressure from employers and the CBI to delay their plans, largely due to the high costs involved of leaving things as they are. A key issue for all of us is that we can no longer afford to be economically inactive in our 60s when we have another 20-30 years more life in us.
In addition,this year the Government will be making progress on its plans to raise the state pensions age to 66 and the review of public sector pensions will also be published, as will a report on long term care.
2011 is hopefully going to be the year where real progress is made in tackling the very real challenges presented by an older population and hopefully will also present key opportunities for us all as we age.
In addition,this year the Government will be making progress on its plans to raise the state pensions age to 66 and the review of public sector pensions will also be published, as will a report on long term care.
2011 is hopefully going to be the year where real progress is made in tackling the very real challenges presented by an older population and hopefully will also present key opportunities for us all as we age.
Friday, 7 January 2011
Learning from leaf cutter ants!
An unlikely feature on this morning's Today programme on Radio 4 about Leaf Cutter ants and their performance in the work place seems very relevant to 2011 when the default retirement age is going to be abolished and employees can work longer. The research from Schofield et al "measures the efficiency of leaf cutter ants' mandibles". These are the ants whose duty it is to cut and carry something like 50 times their size in leaves (Tom and Jerry style).
As the ants wear with age the individuals with the most worn jaws are less than half as effective at cutting. Instead of making the ants redundant or them just dying, their role changes and they spend more time transporting leaf fragments sliced from their sharper sisters IE they still have a valuable contribution to make but that contribution has changed. Maybe there is something for us humans to learn from these tiny and industrious creatures for the new year.
As the ants wear with age the individuals with the most worn jaws are less than half as effective at cutting. Instead of making the ants redundant or them just dying, their role changes and they spend more time transporting leaf fragments sliced from their sharper sisters IE they still have a valuable contribution to make but that contribution has changed. Maybe there is something for us humans to learn from these tiny and industrious creatures for the new year.
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