Lifetime ISAs – saving for the future?

The Chancellor of the Exchequer George Osborne
The Chancellor of the Exchequer George Osborne

George Osborne’s 8th Budget was presented as a ‘budget for the next generation’ acknowledging the hopeless situation too many young people find themselves in: struggling to find work, or being in work but struggling to earn enough to cover the daily costs of living. For these young people saving for a home is a priority that often feels like an unattainable ambition, so finding some spare money to put into a pension becomes an almost laughable pipe dream. Continue reading “Lifetime ISAs – saving for the future?”

General Election Series: We want a world where everyone in later life has enough money

Photo credit: Philip Taylor (Flickr Creative Commons)
Photo credit: Philip Taylor (Flickr Creative Commons)

This week’s blog from our General Election Series looks at why ensuring that everyone in later life has enough money is a key part of our ambition for the next Parliament.

While Age UK celebrates the fact that being older is no longer synonymous with being poor, sadly this is still the reality for too many. That is why ensuring that people have enough money is a key part of Age UK’s ambition for the next Parliament and the first of our blogs looking at our five priorities.

There are still 1.6 million older people living in poverty and many others living just above the poverty line. We know this can’t be changed overnight but we believe all politicians should commit to at least halving the numbers in poverty by the end of the next Parliament.

We have highlighted two ways to help achieve this. Firstly let’s ensure there is a decent State Pension that recognises years of work and caring. The full amount of the new State Pension being introduced on 6 April 2016 will be more than £150 a week and will provide a boost for many low earners and women who have spent many years caring or in part-time low paid work. Continue reading “General Election Series: We want a world where everyone in later life has enough money”

Ending poverty and inequality in later life

Before getting help from Age UK County Durham, Lily, 88, was having to make painful sacrifices every day due to her limited income. This meant going to bed early just to stay warm because she couldn't afford to put the heating on.
Before getting help from Age UK County Durham, Lily, 88, was having to make painful sacrifices every day due to her limited income. This meant going to bed early just to stay warm because she couldn’t afford to put the heating on.

Last week we launched our End Pensioner Poverty campaign. Joanne Sawyer, Equality and Human Rights Policy Adviser, looks at how the issue of pensioner poverty relates to human rights in the UK.

Today in the UK, 1.6 million older people live in poverty, of whom 900,000 are living in severe poverty.  Whilst the number of pensioners living on a low income has fallen considerably in recent years, progress has now stalled and pensioner poverty levels have stayed the same.  In practice, this means constant financial worries for some older people and struggles to afford basic essentials like fresh food, warm clothes, and heating during the winter.

This unequal situation persists despite the right of everyone in the UK to an adequate standard of living which includes “adequate food, clothing and housing”, whatever their age and whatever their background.[1]  The General Assembly of the UN has stated that “older persons should have access to adequate food, water, shelter, clothing and health care through the provision of income, family and community support and self-help”.[2] Continue reading “Ending poverty and inequality in later life”

A fair state pension for all?

This blog was contributed by Hannah Pearce, Age UK’s joint Head of Public Affairs.

Every few years the government announces its intention to fundamentally reform the pension system once and for all to ensure it is fair and sustainable for current and future generations. Each of these attempts is made with good 200x160_moneyintentions and with the hope that the changes will last. However a few years down the line the next government decides it’s time to try again. I’m already working on my fourth pension bill since beginning work for Age UK.

Successive governments are compelled to grapple with the pensions system to catch up with societal changes such as increases in life expectancy, changes in working patterns and to counter structural unfairness. For example several of the state pension reforms in the 2007 Pensions Act sought to ensure that the pension system better reflected the lives of women who often have some time out of employment caring for children, older family members, or working part time.

The compelling reasons for reform under the current proposals were to create a system which is intended to be fairer, simpler and more sustainable. Under the single tier system individuals will receive a state pension based on their own contribution record of up to £146 in today’s money if they have a full record of 35 years contributions. Continue reading “A fair state pension for all?”

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 

Find out what benefits you are entitled to 

Queen announces landmark legislation for older people

We have repeatedly called for improvements to the pensions system and for urgent changes to the shambles that passes for our system of social care and today in the Queen’s Speech two of our proverbial buses arrived at once. The speech contained two pieces of landmark legislation: A Bill to simplify the legislative framework and funding of social care, and a Bill introducing a flat rate State Pension. Both these measures are very much welcomed by Age UK.

440x210_queens_speech_2012_copyright_uk_parliament_flickr_May2012Improving the care and support system in England is long overdue. The complexity of the legal framework, the raft of regulations to plug gaps and the confusion many people experience when trying to navigate the existing care system tells us that care and support need reform. The Care Bill is a vital part of the changes that are necessary. However the current and future funding of adult social care is likely to be the elephant in the room throughout the progress of this Bill. Social care funding has declined by £710 million in real terms since the Government came to power in 2010. This is at the same time as the population of over 85, who are most likely to need social care, continues to rise. Budgets are falling while demand is rising. Continue reading “Queen announces landmark legislation for older people”

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 “Meeting the challenges of an ageing population”