Tag Archives: economy

Age UK’s Economic Tracker: many in their early 50s fear losing their home

Last week Age UK launched the second edition of its Economic Tracker . This addition includes the result of the first wave of a survey we have developed to track older peoples’ views on the economy and their financial situation.

It received quite a lot of coverage in the media, particularly because of the startling statistic the nearly a quarter of people in their early 50s were worried about losing their home as a result of falling behind with mortgage repayments. Like other age groups many older people are suffering a fall in income in the current period of austerity and this is having an impact on their well-being.

  • Over three million people aged 50+ are very worried about the cost of living. This is in the context of rapidly increasing prices for some essential items, especially utilities, which we know have a significant impact on older people’s finances.
  • Only thirty-eight per cent of 50+ say the future looks good for them
  • 35% feel worse off financially compared to last year (see chart below)Pensioner income

Since our first edition, the UK economy and economic policy have given us food for thought. There are concerns, disappointments, and one or two silver linings. As our polling data suggests the economic situation is particularly worrying for many of those approaching retirement, tomorrow’s pensioners, who find it more difficult to find a job following redundancy. Our analysis has found that older workers are more likely to be made redundant when compared to those aged between 24 – 49. This translates into higher proportions of older unemployed workers being out of work for longer. Forty-seven per cent of unemployed people aged 50 – 64 have been out of work for 12 months or more compared to thirty-seven per cent of people aged between 25 and 49. The situation of older people is not as bad as those between 16 – 24, but it is important to highlight that all ages are struggling in these tough economic times.

Quite rightly there is a lot of attention on the young unemployed at the moment, but we must ensure that those over 50 are not forgotten. More can be done by the Government and employers to recognise the value of workers over 50 (the experience and skills that come with a longer working life), provide more training and learning for those in later life, and do more to eliminate the ageism that too often occurs in workplaces.

Read more about the impact of the economy on the financial well-being of older people 

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Meeting the challenges of an ageing population

Each year, Age UK stands back and takes an overview of how society is meeting the needs of people in later life and sets out our agenda for public policy in the year ahead. In our Agenda for Later Life 2013 report we track changes in a range of key areas including money matters, work and learning and health and social care.

A couple smile at each other in the garden.

Public attitudes, policies and the economy all impact on people’s experiences of ageing.  This year, as the economy bumps along the bottom, it would be all too easy to concentrate on the challenges we face. However, we strongly believe in the need to focus on the opportunities as well.

The publication of a White Paper setting out plans for a new single tier State Pension brings hope of better provision in future for those with low incomes and interrupted working lives. Continue reading

No news is not always good news

The Chancellor delivered his third Autumn Statement today. He tried to strike a tone of cautious optimism over recent economic data suggesting the end of the recession and rising employment. Underneath this, however, there were more cuts as Government struggles to eliminate the structural deficit as it has prioritised.

Yet again the biggest omission from the Chancellor’s statement was any plan to help resolve the crisis in social care. We welcome the continued protection for the NHS budget but unless funding for social care is urgently addressed then the knock on costs to the NHS will continue to grow. The announcement of a further two per cent cut to council budgets in two years’ time is likely to exacerbate this if it leads to further reductions to frontline care and support services that are often already stripped to the bone.

Allowing the social care system to limp along, leaving too many older people isolated and afraid of what tomorrow might bring, is not only morally questionable but makes no financial sense. Reform of care funding would be a worthy legacy for any Government, it remains a scandal that 18 months after Andrew Dilnot published his report, it remains unresolved. Continue reading

There may be even more trouble ahead – last week’s announcement of Subsidised Loans

Last Thursday, George Osborne, Chancellor of the Exchequer, and the Governor of the Bank of England, Mervyn King, jointly announced a new measure to stimulate economic growth. They also, importantly, did not rule out more quantitative easing.

Mr King prescribed a recipe of subsidised credit, estimated to be worth about £80bn –already known as ‘funding for lending‘. Technically, it consists of auctions by the Bank of England of loans totalling a minimum of £5bn a month for 6 months at a minimum rate of the Bank Rate plus 25 basis points (currently 0.75 per cent).

They feel this is required because the volume of loans to non-financial companies has been falling since the onset of the crisis: the chart below shows that less money has been loaned than the month before, almost every month, since February 2009.

Monthly changes

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