Tag Archives: State Pension Age

Is retiring comfortably a thing of the past?

Since the early 1990s the numbers of people working past State Pension age (SPA) has been continuously on the rise. Although people choose to continue working for a variety of reasons, perhaps the most important is simply ‘for the money’.

However if this is why people keep working, for some it will never be enough.

A whopping 45% of those currently aged 50+ and in employment will have to work for at least 11 years beyond their SPA in order to attain a level of retirement income which maintains their standard of living.

And of course many may never reach this marker – for such people retiring will necessarily mean a drop in living standards.

This is the result of new research by the Pensions Policy Institute (PPI), sponsored by Age UK and three other organisations.

The research sets a level of income estimated to bring the equivalent standard of living in retirement, and then poses the simple question: ‘how long will people need to work to reach this?’

The following chart is taken from the report:

PPI chart on replacement rate by SPA

This could have important implications for a variety of reasons.

For example, it indicates that many people will want (or need) to keep working for longer than they may have anticipated. This impacts on individuals who may have to rethink plans for retirement, and provides a further imperative for employers to become more age-friendly.

Also, many people will not be able to work for this long. This is obvious for people who suffer from ill health, but also many who lose their job – even in good health – will find it difficult to re-enter the workforce due to ageist attitudes from employers.

However, the report also looks at the numbers of people attaining a minimum income standard – unrelated to their lifetime earnings – by the time they reach SPA. Happily, the numbers here are much higher (85%), but clearly many people will not be able to continue the same lifestyle if they have such a reduced income.

The research highlights issues facing people both sides of State Pension Age, and shows clearly just how uncertain the future can be without good employment and pension provision.

The full report is available on the Pensions Policy Institute website, and makes for a very interesting read.

Last year Age UK’s More Money in Your Pocket campaign helped 500,000 people put £120 million back in their pockets through free benefits information and advice. This year, we will continue to break down the barriers that prevent people from claiming. For more information, please visit www.ageuk.org.uk/moremoney

The work well done

As the State Pension Age rises and people are being encouraged to work for longer, more and more employers (and the public too) are going to have to change their perceptions of older workers. Instead of believing the negative stereotypes and considering that older workers are likely to be less effective at certain jobs than their younger colleagues, perceptions need to change to recognise that each person is an individual with different skills and capabilities.

I came back from a short break in Catalonia, Spain, last week, where I learned about a common thread through the Catalonian culture: the ‘feina ben feta’ –or ‘work well done’.

I read about a local artistic movement by the turn of the last century which made of the quest for properly accomplished tasks one of its leitmotivs. In the park surrounding the monastery of Montserrat I came upon the monument to Joan Maragall, a poet, which includes the following call: “Strive in your endeavour as if the salvation of humanity depended upon each detail you think, each word you say, each piece you assemble, each blow of your hammer. Because it does depend on them, believe me”.

The following day I watched a programme on national TV about Teodoro Gómez. Mr Gómez takes the bus to work every morning. Nothing unusual here. He works at an industrial bakery set up by his grandfather –again, not uncommon for a long-standing family-run business. He weighs each baguette, for either the needle in the scale has to stop at 230 grams exactly or they are not sold. Well, a good example of ‘feina ben feta’ you might say, but still not much to make it on national TV.

One of his grandsons runs the ‘cakes and buns’ department and one of his granddaughters is in charge of one of the retail outlets. Grandson? Granddaughter? Oh, yes, for I forgot to mention that Teodoro is 100 years old. He still loves passing on his wealth of experience and expertise to the younger generations (some of his great-grandsons are already part of the staff). And not just his experience and expertise, but his values and work ethos too.

I came back from Spain with a whole new perspective of my own work. It goes beyond professionalism. It goes beyond doing proficiently what is expected. Señor Gómez is not from Catalonia, but he rolls his kneading pin as if human life as we know it depended on it.  I want to be part of his bunch.

Back in the UK, there are increasing numbers of people working past their State Pension Age. As pension values declines and the State Pension Age goes up, the longer-term trend will almost certainly be for more people to stay in work. Of course, most people won’t want to work until 100, but as we may have to work longer that expected it is essential to break down such negative stereotypes, especially that older workers will not perform as well.

Do you know of any British Teodoro’s? I would love to know about them, and perhaps they could even help Age UK to get this message across. What a privilege it would be to meet them.

Find out more about work and learning

State Pension Age Announcement – Not far enough?

After many months of campaigning, today’s announcement that women affected by the state pension age changes will wait a maximum of 18 months to claim their pension was welcome news for those women who would have had to wait up to 2 years. 

For many women though we understand that this change does not go near enough and appreciate entirely your disappointment and anger that the Government has not reversed its policy. We understand that you feel let down and angry. 

Age UK has worked with many of you to try and get the Government to  reverse its policy of speeding up the equalisation of SPA and increasing the SPA to 66 sooner than originally planned.   Today was an important step in the right direction, we like you wanted the Government to go further.

Find out more about the Government’s announcement

State Pension Age Announcement

The Government announced today that women affected by the equalisation of the State Pension Age will be given a much-needed respite and will now wait a maximum of 18 months to claim their pension.

This will really help the 330,000 hard-working women born between December 1953 and October 1954 who would have been hit hardest, having to wait between 18 months and 2 years longer for their State Pension.

We welcome the changes that have been made – they have listened to our concerns and we appreciate that it is a significant financial commitment from the Government, amounting to around £1 billion, in what is a difficult time.

We would have liked the changes being made to have gone further. Having faced uncertainty twice already, these women must not be affected by any further changes to their state pension age again without sufficient notice.

All of us at Age UK would like to thank the thousands of women up and down the country that have helped our campaign.

*This blog has now been updated. Our sincerest apologies for any confusion caused by our previous post which stated 6 months instead of 18 months.

 Find out more about the Government’s announcement