Motivating those who wish they could be elsewhere

There’s good news and bad news associated with yesterday’s announcement by the CIPD of a huge increase in the number of older workers planning to work beyond state pension age. According to their survey of 2,000 working people, 71% of those aged 55 and over are now planning on staying longer compared to 40% two years ago – with the main driver being “financial factors”.

The good news is that this implies that older people are taking a realistic view of their financial prospects for the future and are taking appropriate steps to deal with impact of the recession and demographic changes. The slightly less clear implication of this is whether or not they will actually be able to realise their plans as, at present, the majority of employers still retain a default retirement age and a right of veto in respect of requests to work beyond this (with no need to justify a refusal).

The bad news – for both employers and older employees – is that needing to work longer by no means equates to wanting to work longer. As CIPD spokesman Charles Cotton said, “Employers will have to motivate those who wish they could be elsewhere”.  They will indeed – and it will not be an easy task. Those who have to work longer for financial reasons are not necessarily going to be doing so gladly, so the issue of resentment and disengagement may have to be added to the already heady mix of challenges surrounding later life working. 

Employers wanting to avoid a range of attitudinal and behavioural problems should start investigating imaginative solutions to making later life working desirable, aspirational and motivating – without further delay. They need to work with their older employees to find ways to redesign the later years of working life in a way that is meaningful and appropriate for older people, provides good business outcomes, and doesn’t alienate younger generations.  A big ask? Maybe, but not impossible.

A glance at the demographics shows that the scale of the problem is going to be immense and is unlikely to recede greatly once the recession is over. A head in the sand approach will not be the best way forward.

Mass media communication

The more we deal with issues relating to the in my prime market, the more it becomes apparent that a great deal more education and information is required to help people plan and prepare for the latter decades of their lives. Traditionally this has been viewed as “pre-retirement planning” or has come from government or charitable organisations striving to “help” the elderly to manage better. Whilst these initiatives are all well and good, there is still a gaping hole in respect of what the “young old” need to know about the preparations we should all be making for the future.

A recent report from retirement housing developers Dunwood Court revealed that older people worry about their futures, but most do not actively plan for the time when they will become less able. In fact more than half of us are likely to die without even writing a Will. Whilst some might put this down to active complacency, we believe that it results from a lack of awareness of some of the issues and the possible actions that could be taken in order to ensure a smoother and more comfortable transition into true old age. Okay we might not know exactly what is going to happen to us, but there is a reasonable degree of certainty in respect of certain aspects of ageing.

Happily we are frequently asked to contribute to radio programmes concerning aspects of ageing (recent events include slots on Radio City 96.7 and Talk Radio Europe) but these tend to relate to discussions about a particular topic which is currently the focus of media attention. What we would like to see (and be involved in) are programmes which more seriously question and debate issues around what it means to grow older in today’s society and what innovative approaches might be taken to helping people take greater responsibility for their own futures. Any takers anyone?

Case studies needed

We are often approached by journalists who need real life case studies of people in their prime (i.e. 50s and 60s) to interview for newspaper or magazine articles they are writing. Just at the moment we have a request for women who are currently planning a retirement dream – the interview will focus on financial planning aspects and will be published in a new financial services magazine coming out early in 2010. The closing date for potential interviewees for this is September 18^th. 

However, on an ongoing basis, we are always happy to hear from anyone in this age group who feels they have an interesting story to tell, particularly in relation to a special achievement in later life or perhaps starting a business or taking a change of direction. We can feature you on the Prime Examples section of our website (www.inmyprime.info) and of course, could then contact you if we were approached by a journalist looking for case studies such as yours. For those of you who do have a business it can be a great publicity opportunity and, this aside, your story can be a huge source of inspiration and a role model to other people who are rethinking their lives.

Please get in touch!

Email enquiries@inmyprime.info

The fun has just begun

This week has already seen two very major announcements relating to the older end of the age spectrum and it’s only Wednesday. Firstly, there has been the news that the government is bringing forward its review of the national default retirement age, currently 65, which heralds either its demise or a significant shift upwards. Secondly, there has been the publication of a Green Paper on the subject of care costs which is likely to impact on the whole population and probably require significant financial input from us all.

We are now, quite definitely, going to see a significant shift in the need for everyone – employers, employees and society at large – to think through the implications of these issues and to plan individually and collectively for all of our futures. We will now, each of us, have to make decisions about our attitude to retirement versus continued employment which will include our finances, our motivation and commitment, and our physical and mental ability to continue on.

These announcements come at a time when two new surveys suggest all is not as it should be and certainly there is a glaring inconsistency and incompatibility which will have to be addressed. A survey for insurer LV= suggests that the over 50s are struggling to save and that nearly 7 out of 10 are worried about their retirement prospects. In reinforcing this Scottish Widows also tell us that, from their survey, the average age that people wish to retire is 61 and that, on average, they would actually be angry if they had to work past 66. Something does not stack up here – even without thinking about the social benefits of continuing to be part of the employment mainstream.

Employer body reaction to the proposed review of the default retirement age is predictably one of hostility (feigned or real) but the reality of the situation will not change. What is required, sooner rather than later, is the need for all sides to start seriously to manage the implications which, when all is said and done, will be immensely positive for all concerned.

Even King Canute could not stop this one.

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

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.

Play it again Sam – all older people are not the same

I’ve been catching up on news reports about the European Court of Justice’s recent ruling that the UK’s default retirement age is legitimate.

John Cridland, Deputy Director of the CBI lauded the decision as “a victory for commonsense”, commenting that “Some people can happily work in their existing job beyond the age of 65, but this is not possible for all occupations”.

He went on to state that “companies with small numbers of staff have particular problems adapting jobs to the needs of older workers”.

This is a hugely disappointing and massively short-sighted reaction from an organization that should provide a better example and think more responsibly. For a start we now work in a largely service-based economy rather than one based on manufacturing and heavy manual labour. Even in the manufacturing sector, mechanisation means that aspects of many jobs can be far less physically arduous than in the past. So the “some” people he talks about as being able to happily work in their existing jobs is probably the majority. Second, what “needs of older workers” is he referring to? Yes, the minority of manual workers described above may have a need for lighter or supervisory work but the needs of most of the rest of us can be dealt with on an individual basis e.g. stronger spectacles for fading eyesight. Other problems we may have e.g. back trouble, tiredness, can occur in other individuals also, they are not the sole prerogative of those who are older.

The overarching need of many (but again, not all) over 65s - in increasing numbers – is simply the need to be able to continue to work to secure their financial future. What this means is a need to be treated equally with younger employees and a need to be trained and developed in order to be able to respond to opportunities and keep pace with workplace developments.

Yet again, sweeping statements are applied to a group which is not homogenous. It sounds like a typical “I’m alright Jack” statement by someone who ought to know better.

Tax free flexible work for the over 65s.

Consultant director of think tank Reform, Professor Nick Bosanquet, has called on the Government to scrap tax on employed over 65 year olds to encourage older people to continue working into retirement.

Speaking at Standard Life’s The Death of Retirement conference on Feb 4^th, Bosanquet suggested that in the current economic climate older people would struggle to stay in the labour market. He said: “We are going to have a period of low interest rates which have already reduced the income and consumption of pensions and we are going to have a period in which there is job rationing in the labour market. Against that background how do we incentivise people to stay in work? My key change would be to make work after 65 virtually tax-free.”

At the same conference his colleague, Reform Director Andrew Haldenby, said that the government needed to do more to encourage people to take control of their retirement and be more active while the Conservative party’s pensions spokesman, Nigel Waterstone MP, called for pensions in the UK to be made more flexible.

All of these approaches are laudable but a combined onslaught of change on numerous fronts is urgently required if any real progress is to be made. Mandatory retirement ages need to be scrapped so that older individuals can neither be forced out of the workplace nor made redundant at 65 plus. Flexible working should also be introduced alongside flexible pensions. And a programme of education about the meaning and implications of pensions and retirement should be introduced to enlighten both employers and employees themselves – from an early age.