We were on the radio again at the beginning of this month. This time we were asked to comment on the findings of the Cost of Retirement Report from Life Trust Insurance which estimated that it requires a pension pot of £413000 to support a comfortable 20-year retirement for a couple or £327000 for an individual living alone.

This is one of a number of such studies being published at the moment which, not surprisingly, come up with quite a range of estimates bearing in mind how many assumptions have to be made and how different these assumptions can be.

However, what is of real significance is the fact that so many people, even those relatively close to retirement, have not thought and are not thinking that far ahead. The reality of retirement is now hitting people big-time and is coming as a major shock to many. Yes, there is the state pension but this is woefully inadequate to support a reasonable lifestyle. And, with the direction of property prices so uncertain at the moment, the notion that this will provide all the retirement capital we need is losing its appeal, at least temporarily.

But what is really beginning to dismay government, institutions and individuals alike is the underlying complete order of magnitude lack of understanding of what it’s going to take to see us through our later years. This is what must be addressed as a matter of urgency.

What we are looking at this month is what, on a personal level, you are going to do now – what can you do to be better prepared for retirement.

It’s very easy, but of no practical use, to say that we really should have thought of this before but, in reality, many of the changes, in particular longer life expectancy, have only just become apparent. However, we must believe that it’s never too late to do something – so let’s start now.

Retirement used to be so easy. You worked for a very long time and then, tired and worn out, you spent a few twilight years with your grandchildren or in your allotment, and rested. It seems so different now with so many options, choices and current uncertainties. However, some things don’t change. For instance, one thing’s for sure, nobody leaves here alive!

So the key is to make sure that you are in control of the rest of you life, if not already then starting right now.

We are caught up at the moment in a whole series of financial conundrums which may have a huge bearing on our retirement plans – the “credit crunch”, inflation, levels of state pension property prices, equity release, the direction of company pensions, and so on. And if we’re lucky enough then we’ve also got inheritance tax to worry about, and how much of our money we should pass on to the children and when?

Although, ideally we should see in my primers as being over 50, starting to prepare for this phase of our lives must take place long before this, probably in our thirties if not before. Whether the magic number is £413000 or something else depends on our aspirations, our life expectancy, when we plan to retire, our investments, taxation, inflation, our ability to continue earning and a host of other things. And we have to understand whether we are accumulating capital or its equivalent in earning power, such as through pensions or investment income.

Financial well-being in retirement is obviously a major issue and, coupled with the general lack of knowledge as to how pensions and the financial world actually work, this can cause us a lot of head-scratching. It’s why so much is written in newspapers and magazines about financial issues and it’s a very fruitful area for financial institutions to sell their wares. It’s also the reason that the government wishes to provide more financial education to adults and, better still, to youngsters at school.

Life expectancy is such now that people can, in general, expect to live 20 to 25 years past the traditional retirement age, well into one’s eighties and nineties. Not only do we have to finance that very long time (probably some with the added burden of care costs) but we want to remain physically and mentally healthy, we want to lead interesting and fulfilling lives, we need friends and social interaction, and we want to preserve our self-esteem and feelings of self-worth.

And there are many stakeholders in our retirement decisions as well as just ourselves. Government, employers, health and welfare services, our families – all will be affected by our retirement decisions.

It surely must be time to open up the question of retirement and, indeed, wonder what precisely is the nature of retirement. Is it the beginning of the end or is it a new beginning? Does it automatically have to involve a time of non-work? Does it exist at all or can working and retirement blend seamlessly with one another?

So, although there is a lot being written, at the moment, about financial retirement planning perhaps we should ask ourselves a broader range of questions such as:

Do I want to stop working? If so, why, or why not?

How do I envisage my retirement?

What will I be doing?

How structured do I want it?

What lifestyle do I aspire to?

When will all this happen?

What will my health be like?

How will I make it all possible?

For starters read, or re-read, our primer A new approach to retirement planning and then watch as we flesh out these ideas over the coming months.

Irrespective of where our money is going to come from and how much we have, and perhaps the limited number of options we have to influence these, we do all have the ability to review what we spend and how to get the best value for our money. In my primers can pride themselves on being experienced and worldly-wise and having been around the block a few times. And so getting the most out of our money should come naturally.

On this site we constantly advocate the value of becoming totally computer literate and benefiting from that ability to use price comparison sites and excellent consumer help sites, such as Martin’s Money Tips.

And so we are bringing you another site worthy of your attention Oscar, which provides help and information for the over 50s about their benefits and entitlements, as well as giving members access to a unique list of nearly 4000 concessions and discounts. More>>

As if to reinforce the message that being older and growing older are beginning to be seen as major issues in a number of arenas, three major UK studies have been published just recently, which you may wish to download and read.

“Living in the 21st century: older people in England”

This presents a major longitudinal study about the reality of ageing in England. It covers employment, material well-being and poverty, health, quality of life and independent living. Amongst its findings it concludes that poor elderly people are twice as likely to die at any given age as the richest. Poorer women between 60 and 74 were six times more likely to have died than the richest women of the same age. The research, published by the Institute of Fiscal Studies (IFS), shows the risk of death decreased as wealth increased. download

“Don’t stop me now – Preparing for an ageing population”

This illustrates how unprepared the UK Councils are for this ageing population. The Audit Commission’s new report, published 17 July, has found that councils in England, particularly those which have the fastest ageing populations, are not ready to meet the challenges or grasp opportunities as we get older. download

“The nature of work”

This volume explores the true meaning of work in 2008 from the perspective of all different ages. The new research findings from the sixth Vodafone UK Working Nation report say that older people are the happiest and most motivated workers in Britain, with satisfaction levels soaring above those in their twenties, thirties and early forties. download

Following on from the stir caused by Dame Helen Mirren looking so stunning at the age of 63 in her red bikini we now have (totally unconnected) Queenie, the Senile Stripper, appearing at the Edinburgh Fringe Festival just as she approaches her 75th birthday. Through most of August, Lynn Ruth Miller a writer, comedian and cabaret performer from San Francisco will be tastefully titillating her audience nightly as she removes her garments to music (not quite all her garments I might add). She describes her bra size as “32 long”.

Times are changing and you know what they say, “if you’ve got it, flaunt it”. We look forward to seeing many more examples of this new found confidence, as being in your prime constantly becomes redefined. Thankyou but not you, Mr Stringfellow – next!

It had long been thought that brain growth ends during young adulthood. However, with the help of computer imaging, researchers in Germany have shown that when older workers learn new skills their brain cells actually do develop. People aged 50 to 67 were taught to juggle and, after three months of learning, parts of the brain grew. When they stopped juggling for another three months their brains shrank again.

All seems ok so far but, be honest, how many vacancies for jugglers have you seen recently?

We have constantly stressed the importance for older people to keep their minds active by taking on new challenges and learning new things and this is more evidence of the benefits and potential of doing so. Whether it’s a work-related technical skill, or brain-training games or pastimes, keeping one’s mind active and alert is going to be a huge factor in our abilities to continue in work, to stay socially active and to stave off mental decline.

On July 26th Mick Jagger reached 65 years of age and truly became an Old Age Pensioner. Perhaps not typical of in my primers, nevertheless he ticks all the boxes as far as attitude, interests and long-term financial planning are concerned. He has also been, for all baby boomers, someone we have grown up with and someone who defines the whole approach of our generation.

On a personal level, I first saw The Rolling Stones in 1962, at the Marquee Club, Wardour Street, Soho, some time before the release of their first single “Come On”. Very quickly, certainly in my circle, you either became a Beatles fan or a Stones fan. I am now able to continue to listen to the Stones in almost any environment as I come to terms with my new iPod and its amazing technology. And the music itself sounds as vibrant as ever – certainly for me.

Hip replacements now prevent us from watching John Cleese and his “silly walks” but Mick Jagger still seems as lithe as ever. It will be a sad day when Mick sings “This could be the last time” and means it!

If not now, when - living the baby boomer adventure

by Esther Rantzen, published in hardback by Headline Springboard (July 2008).

(paperback version to follow early 2009)

In her typical style, Esther Rantzen exhorts her fellow baby boomers not to go gently into old age and provides practical advice on how to do it. It’s never too late to take up hang-gliding, swim with dolphins and a host of other things.

Rather like Marmite, you either like or loathe the somewhat opinionated, Esther-knows-best approach but her heart’s always in the right place.

To order this and other similar books click here.

These are, as they say, interesting times. As we highlight in our first article below, a new Equalities Bill has just been proposed which will make changes that will affect age discrimination more widely than just in the workplace. Meanwhile the European Court of Justice (ECJ) hearing of the ‘Heyday’ case next week on whether forcing workers to retire at 65 is unlawful could unleash several hundred pending tribunal cases with thousands more to follow. Heyday, an offshoot of Age Concern, claims that up to 25,000 people are retired against their will each year so a favourable ruling would be a significant step forward in terms of their position and that of many more people in years to come. However, the wheels of justice turn slowly. It is predicted to be the end of this year before a final decision is reached after which the case will return to the UK High Court, where a final verdict is expected by the middle of next year.

Meanwhile the UK economic climate is causing many over 50s who are still working to re-evaluate the length of time they feel they may need to continue in work in order to be able to fund a comfortable and secure retirement, while a considerable number of people who have already retired are contemplating or actively seeking to return to work.

Economic recession is not a great place to be for anyone, particularly as we start to reach the end of our working lives, but perhaps there is a silver lining. If it has the effect of encouraging us all to cut down, cut back, save, and take a simpler and ultimately more satisfying approach to daily living (no, we really don’t need all the stuff we buy and waste and discard) then perhaps it will be a good thing. For tips on how to start changing your mindset, see our primers Managing your finances - getting started, some basic ideas, Sink or swim? Breaking free of the spending spiral and Inflation – Why we must stop it creeping up on us. You could be amazed at how much less stressed you feel if you start making do with less and taking more control.

The government has, at long last, now announced the introduction of a new Equalities Bill which will make various changes to what is and what is not acceptable or permissible with regards to various forms of discrimination. The most contentious measures will be in the arenas of race and gender but, as far as we are concerned, there are some very far reaching changes relating to “harmful” age discrimination which has long been apparent but, hitherto, not tackled.

Although Age Discrimination legislation with regards to employment and allied matters has been in force since 2006 (still to be effectively put into widespread practice) there is no protection for older people in so far as the provision of goods, facilities and services are concerned. Thus, for example, in relation to NHS medical services or the provision of travel, health or motor insurances the reason for refusal or high premiums that “it’s your age – what do you expect?” has been sufficient justification - end of story.

This kind of blanket, arbitrary attitude or policy making will, in future, not be allowed and merely being in an age category will no longer be a barrier. Reasons for refusal or loaded premiums will have to be much more individual-specific and justifiable.

The initial, knee-jerk reaction of the insurance industry is that premiums will have to go up across the board to compensate or that products will have to be withdrawn. We shall see. All that is being asked at the moment is that merely because a person moves from, say, 75 to 76 that insurance does not become unavailable or prohibitively expensive.

Likewise, doctors and health services will not be allowed to arbitrarily decide that a person is “just wearing out” and it’s not worth bothering to try and fix them.

Despite the obvious facetious comments, “positive” facilities will still be allowed; for example free bus passes, holidays for over 50s only, and indeed 18 to 30s only. Unlike other anti-discriminatory measures, which run the risk of polarising parts of society, we all hope to grow old and, therefore, have the potential to benefit from these measures, if not now then sometime in the future. Hence, they should be seen in a very positive light.

Obviously, those who are going to benefit first are those who are already tending towards elderly, although the timescales for implementation are rather vague. However, in my primers, in particular, should ensure while they have the power and the confidence to do so that they are protecting their futures and, indeed, the current positions of their elderly relatives.