Mervyn Kohler, Age UK’s External Affairs Adviser, looks at what the Budget means for savers, the social care system and our hopelessly energy-inefficient housing stock.
In its tone and delivery, the Budget speech sounded good news for pensioners, and there is much to applaud in the Government’s proposals. But before getting carried away with enthusiasm it’s important to take a cool look at what we mean by ‘pensioners’.
Retired people with savings who have seen desperately poor returns on their investments will welcome the National Savings Pensioner Bond from next January, the simplification of ISAs and their raised savings limits.
Older people coming up to retirement can appreciate the proposed flexibilities around their pension savings, and the increases in the lump sums they are allowed to draw. But they must be careful to strike a balance between the resources they use to spend now, rather than fund their (hopefully) long lives at an appropriate level. Unfortunately these savings can only be used once! Continue reading
Posted in Budget, Government
Tagged Age UK, Age UK blog, Ageing, ageing population, ageing society, Budget 2014, Chancellor's Budget, George Osborne Budget, older people, pens, pensioners, pensions
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)
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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Posted in Consumers, Economy, Employment, Income, Money Matters
Tagged #economictracker, Age UK, Age UK blog, Ageing, ageing population, ageing society, benefits advice, benefits and entitlements, benefits calculator, benefits check, consumers, Economic Tracker, economy, Employment, Incomes, Money & benefits, money and benefits, money matters, older consumers, older people, older unemployed, older workers, pensioner poverty, pensioners, pensioners’ benefits, tomorrow’s pensioners, UK economy, unemployed, universal benefits, Work