Deciding when to retire

Today, when standard mandatory retirement ages are a thing of the past, it is more important than ever for employers to understand some of the factors underpinning the retirement decision. For example, the timing of retirement where one of the key myths is that a person’s retirement date will depend largely on when their partner decides to retire, particularly in the case of women.

However, as a recent article in the Wall Street Journal indicated, the days when a husband automatically retired at 65 with a corporate pension and his wife dutifully followed him, are over. Most women approaching retirement age are now working, and many have their own retirement savings and viewpoints about the nature and timing of retirement.

Many of today’s older women entered (or re-entered) the workforce later than their partners following a period of non-work or part-time working while they raised their children. Consequently they may be at their peak with prospects ahead of them when men slow down and want out.

Add to this the fact that retirement, particularly for women, who tend to live longer, can now last for up to thirty years or so and women may look with horror at the prospect of relinquishing an income, social relationships and recognition for many potentially unfulfilling years ahead.

Of course, it’s not all bad news; many people – female and male – have very positive retirement plans. But, as the article indicates and my own experience with coaching and advising older people bears out, many individuals simply don’t talk to each other in any meaningful way about retirement beyond a shared acknowledgement that it will be good to leave the rat race behind.

Employers can help in many ways, not least through providing meaningful, couple-centred later life planning programmes and coaching. That may sound overly altruistic and unrealistic in this economic climate but, if employers want to see their older workers making positive transitions into retirement and being clear and open about their future plans, something has to change.

See the WSJ article at:

http://online.wsj.com/article/SB10001424052970204571404577255662010466038.html?KEYWORDS=retire

Where there’s a will (and Gerry Robinson) there’s a way

Anyone over 50 who doesn’t have a will deserves to be locked in a room of squabbling lawyers for as long as it takes them to realise the error of their ways. The puny excuse of death being a distant and unlikely possibility no longer stands; everyone over 50 has to recognise that the grim reaper might now drop by unannounced any day, and it’s part of being a fully-fledged grown up to acknowledge that fact and not leave a great big mess for those left behind. 

That’s a view shared by leading business guru Sir Gerry Robinson, last seen on our TV screens tackling care homes. Now, in a new six part TV series Can’t Take It with You (BBC Two, Fridays) he tackles the subject of the emotional dilemmas people face in writing a will, working alongside a leading lawyer to provide real people with help in wrestling with the often taboo process of dividing up their estate.

Dying without a will can lead to people you love receiving nothing, or paying huge tax bills unnecessarily. Yet, shockingly, around 70% of people in the UK do not have a legally valid will – leaving their families not only very vulnerable but in the position of having to sort out a very complex and emotionally charged situation at a time when they may be feeling least able. 

Last week’s programme (the first in the series) accentuated very clearly how choosing between the people you love is never easy when it comes to writing a will -  what do you do if you have remarried and now have step-children to think of, in addition to your own kids? What if one of your children has gone off the rails? What if you can’t agree with your partner on the best way to divide everything up? Having observed these problems in the show, one had to admire those who had volunteered to appear.

Sir Gerry says: “I was astonished to discover how many people in this country haven’t written a legally-binding will … Would you rather write your will yourself, or have the government write it for you by default?”

The remainder of the series will, no doubt, make interesting viewing. Having tackled wills, it would be great if programme makers could seize the moment and deal with the even thornier issue of pensions next…

 To view the first programme click here: http://www.bbc.co.uk/i/xk05j/

Job of the week: on tap childminder, no holidays or pension

News yesterday that a third of grandparents regularly holiday with their children and grandchildren for the sole purpose of providing them with child care assistance.  This is hardly revelationary as even at home, half of grandparents look after grandchildren during the summer holidays. Apparently UK’s grandparents will save parents around £800 million in childcare costs this summer.

According to an article in the Daily Mail there is a growing trend of families travelling in larger groups, with grandparents “helping parents take a well-earned break” by sharing childcare responsibilities. Whilst the economic reasons for this are clear (often extended families can rent accommodation at a cheaper rate) and the social reasons are to be applauded (a return to old style extended families has got to be a good thing), one wonders how sustainable this will be as more older people work longer. When will they get “a well-earned break”?

At present many older women in particular work part time in order to accommodate caring for grandchildren and parents. Yet, as highlighted in a report published by the charity Grandparents Plus, many are left struggling to juggle their jobs and their childcare responsibilities. 

A study by the Organisation for Economic Co-operation and Development found that a third of a British family’s net income goes towards the cost of childcare – higher than every other country in Europe and the rest of the Western world. The childcare contribution by grandparents has been valued at £4billion, a figure which is likely to keep rising as the cost of childcare increases.

The Grandparents Plus report says many European countries allow parents to transfer parental leave to grandparents, let working grandparents take time off if their grandchild is unwell, and pay them for the care they provide. However, in the UK childcare vouchers cannot be used to pay grandparents, and they have no right to request flexible working.

Whilst we cannot expect in these straitened times that the government will be able to fund new or improved schemes, surely there must be a way that a fairer balance can be attained between the needs of working parents and those of working or wanting-to-work grandparents? Why are parents – with jobs – relying on free care from grandparents who may be either unable to get jobs or feel they shouldn’t work full-time in order to accommodate their children’s childcare needs?

Of course, emotionally, grandparents will generally want to help. But somehow the current model is, at the very least, unfair.

Read more:  http://www.dailymail.co.uk/travel/article-1305381/Grandparents-provide-summer-childcare-family-holidays.html#ixzz0xVacgR1a

How much? For how long?

More fuel to counter the recent boomer-bashing articles which accuse the over 50s of lolling about in money heaven while younger generations burn…

The Children’s Mutual, a leading Child Trust Fund provider, has revealed that millions of parents in Britain are being forced to postpone their retirement to meet the rapidly rising financial burden of supporting their adult children.

Their research found that 79% of parents claim their ability to save for their retirement has been impacted by the unplanned financial support needed by their offspring – with a third of those (32%) suggesting it has been significant.

As a result, 57% of parents of 18 to 30 year olds say they have no choice but to retire later – with 43% expecting to work up to five years longer than they wanted because of the cost of their ‘adult’ children.

The news is worse for 9.3% of parents who believe they will now be forced to work over a decade longer with some abandoning the dream of retiring altogether.

Initially, 75% of parents planned to retire before they reached 65; now 40% have accepted the fact that they will not retire before the ‘official’ retirement age.

Not all milk and honey then.  And yes, despite accusations to the contrary, it appears that the over 50s do have a strong sense of responsibility.

‘Sandwich generation’ feel the squeeze as they spend £1.5bn a year to support children and parents

Couples with grown-up children and ageing parents are spending more than £1.5billion every year to help support them.

Figures revealed highlighted the growing costs to the so-called ‘sandwich generation’, people who are squeezed between offspring and elderly relatives.
More than 250,000 Britons are currently paying for their grown-up children and at least one ageing parent, according to research by Unbiased.co.uk website, which searches for financial advisors.

Click here for more >>

(Source: Mail Online)

Elderly to get more protection from thieving relatives. Victims are losing cash, savings and their homes

New measures are being prepared to tackle the growing problem of family members who exploit elderly people by stealing their savings and pensions.

Ministers will propose that banks, building societies and the Financial Services Authority monitor the accounts of elderly people for unusual cash withdrawals and direct debits and share information with the authorities where theft or fraud is suspected.

Click here for more >>

(Source: Times Online)