Saving for retirement – the biscuit tin approach

Hardly a day goes by now without another piece of depressing information about the state of the nation’s pensions. In the last few days alone we have seen more defined benefit schemes closing, more reports on the lack of savings that individuals are making particularly during the recession, and soaring bankruptcy numbers among pensioners. One report, highlighting the fact that many are now unable to foresee when they might retire or how they might have adequate savings to live on, has  coined the term “baby gloomers”  to describe the plight that people feel they are in.

The advice that comes from the financial industry is plentiful but very self-serving: “save more for a pension”; “release some equity from your home”; “tuck your money away in an ISA”; “invest in buy-to let”; and more. The government believes that the answer lies in personal accounts which everyone will flock to in a few years’ time – we will see.

Many people, knowing their savings are insufficient but not by how much, would like to work longer, certainly past 65. Yet the government is still dragging its heels in a most extraordinary fashion. This is despite the fact that change is inevitable. The state pension age will be increasing to 68 in the coming years but the default retirement age is currently 65. What are people going to do –starve for three years? One glimmer of hope that the recession is providing is that firms are beginning to see the futility of redundancy as an answer to their problems and are looking at more innovative ways of managing the current problems with flexible arrangements, part-time working, sabbaticals etc. all now featuring. These are also ideal tools for dealing with an ageing workforce.

However, the first problem that must be addressed is one of awareness. There is, in the country as a whole, an order of magnitude lack of understanding among people of all ages as to exactly what it takes in financial terms to retire in some form of comfort. A fundamental and far reaching “reality check” is needed to reconcile the aspirational dream of an interesting, financially secure retirement with the ongoing provision that individuals are making through their working lives.

Retirement financial planning involves running up a store of wealth, retiring, and then running it down again over the course of the rest of our life – as simple as that. Building up a retirement pot is very much like tucking money away in a biscuit tin each week to save for Christmas – except Christmas may last twenty years or more.

For more see  Saving for retirement – the biscuit tin approach

He who knows not…..

As may be seen from our own approach here at in my prime we firmly believe that internet access and online activity is not only the future but is already the present. Accordingly, we very much welcome the Government’s Digital Britain Report and initiatives such as NESTA’s “Reboot Britain”.

It is, therefore, rather disconcerting to see in research carried out for Ofcom that not only is there a significant minority who do not have the internet but that many of them, particularly older people, have “self-excluded” themselves and do not see the need nor the value in getting to grips with the new technology.

We are now in a transition phase and many elderly people did not work in or were not brought up in a computerised environment. Their attitude is at least understandable. The learning curve for them is particularly steep – although that should not, in itself, be an excuse. I have experience of trying to help someone make the transition and there is much that can be done by the computer industry to make the experience easier for the elderly – core programs only, spam-free, virus-free, pop-up free, update restricted etc. etc.

But for those over 50s who have not yet reached this stage in their lives there is no excuse. Whether it be employability, keeping in the social mainstream, access to information, finances, improved purchasing power or a host of other uses and benefits, being connected is of paramount importance. Otherwise a truly second class citizenship will emerge and is already doing so.

Every encouragement, incentive and opportunity must be provided to bring people aboard. This is not another example of a nanny state telling us what is good for us and restricting the freedom of the individual – people must not be allowed to shy away.

He who knows not and knows not that he knows not is a fool; avoid him.

He who knows not and knows that he knows not is a student; teach him.

He who knows and knows not that he knows is asleep; wake him.

He who knows and knows that he knows is a wise man; follow him.

Ancient Proverb

Goodbye 9 to 5 – on TV

Following on from my previous blog, this week I tuned into a new TV programme “Goodbye 9 to 5” aimed at those over 55 who have retired or are about to retire.

It can be found on “Information TV” (Sky 166 or Freesat 402) and is put together by Chris Gosling who runs the firm Serious Leisure TV from East Anglia. The programmes are low budget but very interesting and professionally put together, and obviously now need all the visibility they can get as they roll out their schedule.

55 is an interesting age to choose but we can fully understand why. There will be those who have retired and will appreciate the leisure aspects and also the injustices that some in retirement will have to face but there are many for whom retirement is not yet an option and those people will be looking for content of a differing nature. Advance notice of issues to come show that Chris is well aware of this and we look forward to watching the content develop.

Furthermore, there is also a networking site to back it up which is actively seeking feedback and suggestions from people regarding the direction the programmes should take – and even, maybe, the possibility of contributing to the programmes at some future date. Check it out and sign up at http://goodbye925.ning.com/.

We wish this venture every success and look forward to seeing it progress.

Another one bites the dust!

This week has seen the demise of yet another high budget, high profile over 50s social networking/lifestyle site – this time in the USA. Its name is irrelevant since it is now history.

Here, at in my prime, we carry out global research on a daily basis covering all kinds of issues as they relate to the world’s ageing population and to older people (whatever that might mean exactly). Some while ago we wrote here about the nature of sites for the over 50s and the genuine need for subject specific social networking sites, for example ones which might bring together those seeking employment or those who have been out of work for some time. This time can be very lonely, frustrating and depressing in which knowledge, advice and mutual support would be of tremendous value. We are still waiting to see one but we know it will come.

Websites, currently, tend to fall into a number of categories. There are a few sites or blogs, rather like ours, which are run by professionals in the field and which provide useful information and commentary on what is happening in the over 50s arena. I will come back to those in a future blog.

For the rest they tend to fall into three main categories.

There are some very good sites emanating from charities and central or local government which provide a wealth of information and advice and which all “silver surfers” should refer to. They tend, on the whole, to be geared towards issues affecting the more elderly end of the age spectrum.

There are sites which are run as a hobby by old codgers for old codgers. These are cosy, friendly and non-threatening but, in the end, there is a limit to how many times one can laugh at a joke about going upstairs and not remembering why.

And there are those, the ones now falling by the wayside, which are what one might call “lifestyle” sites. These are based on the false premise that “older” is a condition that you wake up to one morning having been “younger” the day before and from now on all your friends only fit into the “older” category and anything you buy must be purchased from an age-specific site – insurance, washing machines, holidays – anything. Why?

The mature market (mature meerkat?) does not operate like that and does not want to operate like that.

It’s not going away!

This week I attended the first in a series of seminars under the title “Just Ageing” (http://justageing.equalityhumanrights.com/) which is being organised by the Equality and Human Rights Commission (EHRC) and the new charity formed from the merger of Age Concern and Help the Aged. The first seminar looked at our assumptions about the process of ageing itself during which Professor Tom Kirkwood, Director of The Institute for Ageing and Health at Newcastle University, gave a fascinating talk on the physiological and social experience of ageing.

I can’t really do justice here to his exposition which in itself was a huge summarisation of the work being undertaken. However, the message coming through loud and clear is that human beings are not per se programmed to die at any particular time – indeed the survival instinct in us is strong right to the end. So, under the right circumstances, increasing life expectancy can be expected to continue and we should celebrate old age, not see it as form of disability or inconvenience. What does happen is that imperfections in us and breakdowns in our ability to function bring on the end of our lives and if these can be eliminated or minimised then our life spans can be increased. Furthermore, many of the causes of this are “malleable” – things such as diet, housing, education, exercise, negative stress – as evidenced by differing life expectancies in different environments even within the same country.

This was the third seminar, organised by varying bodies, that I had attended in the space of a week each focusing on a differing aspect of ageing. There is much excellent work taking place and it is clear that the momentum is increasing. However, to date, government seems to concentrate only on the short term without a real “statesmanlike” approach to the longer term questions, employers (with a few exceptions) seem concerned only with damage limitation and containment of costs, and amongst the population at large there is a massive lack of awareness of the issues involved.

When will all this be pulled together?

Dumb, depressed and drunk?

An interesting piece of research floated past the radar this morning. Apparently a recent University of Michigan study of several thousand “seniors” found that those in the US performed significantly better than their counterparts in England on standard tests of memory and cognitive function. The study is the first known international comparison of cognitive function in nationally representative samples of older adults in the United States and England. It revealed that the overall difference in cognitive performance between the two countries was quite large – approaching the magnitude associated with about 10 years of ageing. In other words, the cognitive performance of 75-year-olds in the U.S. was as good, on average, as that of 65-year-olds in England.

The reasons why this may be are numerous and require further investigation. However the indicators are that a number of factors may play a part: First, higher levels of education and net worth in the United States accounted for some of the better cognitive performance; second, U.S. adults reported significantly lower levels of depressive symptoms than English adults (unlike Brits, they seek medication if they are depressed), and this may have accounted for some of the U.S. advantage in brain health since depression is linked with worse cognitive functioning; and third, significant differences in alcohol consumption between the U.S. and English seniors may play a role with more than 50 percent of U.S. seniors reporting no alcohol use, compared to only 15.5 percent of English seniors. Previous research has shown that moderate alcohol consumption, compared to abstinence, is linked with better cognition among those aged 50 and over.

Interesting links and interesting messages. Okay, maybe we can’t do much about our existing levels of education and net worth in later years, but keeping the brain active, keeping involved, interested and in the mainstream to stave off depression (and perhaps seeking treatment if it does occur), and cutting back on alcohol are all things which are possible and achievable. If it helps keep the brain ticking over that much better in later old age surely it’s got to be worth the effort.

More about the study at http://www.newswise.com/articles/view/553659/

Save the last dance

For once a great TV programme about older people last night (in Alan Yentob’s BBC2 Imagine series) presented in a way that was neither patronising nor voyeuristic. The programme followed the Sadlers Wells Company of Elders Contemporary Dance troupe – a group of 25 or so ordinary men and women of average age 79 - through their preparations for a new dance performance at Sadlers Wells.

Not only were the dancers themselves entertaining and inspirational, but their commitment, attitude and sheer bonhomie was a joy to behold. Better still the audience who watched their eventual performance were obviously moved, as had been their choreographer. Not by the fact that older people can dance, but by the extra element their life experiences added to their performance, underlying that dance is not just about physical beauty and accuracy but also about creativity and soul.

Definitely worth tracking down if you missed it even if you’re not a great dance afficionado. Next week’s programme topic also bodes well: David Hockney at age 70. Watch that space.

Just who are we talking about?

As you may be very well aware Age Concern and Help the Aged have merged and, last Friday, we attended one of a series of presentations that they have been making around the country to bring on board their many members on the ground who do such valuable work. In addition, we also attended a workshop to consider what new name they should have and what image they should portray. It is here that they have a major dilemma.

Traditionally these charities have been associated with caring for the elderly and many of their workers and volunteers have this clearly in mind when considering their work and their investments of time and energy. However, it is also clear that management have in mind a broader remit, one which encompasses all people over 50 and, therefore opens up all kinds of other possibilities, in particular activities of a more commercial nature (but don’t mention Heyday whatever you do).

All we would say is tread very carefully. If it was ever true that being over 50 meant being elderly it is certainly not so now. As the charities themselves said there will, in future, be a sizeable minority of us who will live to be over 100. Nobody would ever dream of lumping together the first 50 years of our lives into one age category – and the same should apply to the second 50 years. Unless it is very careful the new charity runs the risk of not really fully understanding its own reason for being and in the process it will alienate supporters at all points in the age spectrum.