This guest blog was contributed by Laurence Baxter, Head of Policy and Research at the Chartered Insurance Institute (CII)
Having looked at the next generation of pensioners in the first roundtable entitled Is it too late to save, the Age UK Financial Services Commission then turned its attention on 6 February to the early to middle years of retirement. Hosted by Mercer, leaders from across the financial services industry debated a number of hot topics which are summarised below.
Managing early retirement while considering the longer term
Individuals in the first decade of retirement face the potential for economic, lifestyle and health shocks, underlying the importance of financial resilience for this group. One complexity was the different types of pension pots people have as a result of multiple employers. There is the transition from Defined Benefit to Defined Contribution, so some of pension pots will be final salary schemes while others are money-purchase. Changing patterns of retirement from a single watershed event to more of a process will also be significant.
While early retirement is not without its bends in the road, people in this group still need to be mindful of issues that could arise later in life such as long-term care and how or whether they use home equity.
Heaven knows we need a fresh start. With every tweak of the programmes, with every refinement of the strategy, the prospects of a convincing victory on the core front just get more remote. The fuel poor get to make harder and harder choices, the old and the young suffer health setbacks, the misery piles up. Words like national disgrace, scandal, heating or eating, become devalued.
We’ve ended up with a totally perverse delivery system. The general consensus is that an area-based, whole-house approach works best: what we’ve got is market-driven, bench-marked by cost-effectiveness, and funded by the energy companies who can’t deliver at scale because of the impact on consumer bills. We have programmes delivering the least satisfactory outcomes. A Written Parliamentary Answer at the end of January says it all. Citing the latest figures (21 November), it reported the achievements of the Energy Company and Green Deal in 2013. 471,766 measures had been installed in 403,000 houses (an average of 1.17 measures per house – hardly amounting to a whole-house make-over). 394,370 of those measures had been funded by ECO, and 8,485 by householders getting a Green Deal survey then claiming the cashback offer in the scheme. Only 458 had gone ahead with the Green Deal package, including finance. Continue reading
Posted in Consumers, Energy, Spread the Warmth campaign
Tagged #fuelpoverty, #spreadthewarmth, Age UK, Age UK blog, Ageing, ageing population, ageing society, consumers, Energy Company Obligation, fuel bills, fuel poverty, fuel poverty older people, Green Deal, older people, spread the warmth, Spread the Warmth campaign