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Number of people working beyond 65 soars
http://www.x404.co.uk/forum/viewtopic.php?f=19&t=9959		 Page 1 of 1
Author:  Amnesia10 [ Thu Aug 12, 2010 2:24 am ]
Post subject:  Number of people working beyond 65 soars
http://www.telegraph.co.uk/finance/pers ... soars.html

Quote:
In the last three months an extra 40,000 people over the age of 65 have joined the work force, taking the total number to 823,000. This is the highest number since the Office for National Statistics started keeping these figures in 1992.
The highest quarterly jump previously was no more than 26,000. It means that one in 12 people over 65 are now working.
The figures suggest that thousands of pensioners are going back to work to fund their slim incomes, or that they are not in a financially strong enough position to retire in the first place, according to experts. Some are also actively choosing to work longer.

Hardly surprising with the impacts the crash had on pension savings then the double whammy of ultra low interest rates which are used to set annuity rates. So the majority are having to stay on because all the promises of insurance companies and governments have decimated their savings and retirement options. Unfortunately this will be the norm for people over the next three years at least as interest rates will be too low to enable many to retire on an adequate pension.
Author:  AlunD [ Thu Aug 12, 2010 5:12 am ]
Post subject:  Re: Number of people working beyond 65 soars
Amnesia10 wrote:
http://www.telegraph.co.uk/finance/personalfinance/pensions/7939296/Number-of-people-working-beyond-65-soars.html

Quote:
In the last three months an extra 40,000 people over the age of 65 have joined the work force, taking the total number to 823,000. This is the highest number since the Office for National Statistics started keeping these figures in 1992.
The highest quarterly jump previously was no more than 26,000. It means that one in 12 people over 65 are now working.
The figures suggest that thousands of pensioners are going back to work to fund their slim incomes, or that they are not in a financially strong enough position to retire in the first place, according to experts. Some are also actively choosing to work longer.

Hardly surprising with the impacts the crash had on pension savings then the double whammy of ultra low interest rates which are used to set annuity rates. So the majority are having to stay on because all the promises of insurance companies and governments have decimated their savings and retirement options. Unfortunately this will be the norm for people over the next three years at least as interest rates will be too low to enable many to retire on an adequate pension.


Oh so sodding true. :cry:
Author:  Amnesia10 [ Thu Aug 12, 2010 6:11 am ]
Post subject:  Re: Number of people working beyond 65 soars
With stock markets plunging again, and some thinking that the US market and possibly the UK stock market are still too expensive considering the outlook, then retirement funds will suffer. Pension liabilities at the big firms will mean that within a decade the final salary scheme will be dead, with just MP's having a final salary scheme. In order to provide a two thirds final salary with interest rates at 0.25% means that employers will need to have upto 268 times the final salary accumulated. That is impossible. Let alone for companies to achieve for everyone. So expect a lot of pension schemes being closed to all members, and a switch to defined contributions. Add in poor returns over the last decade and you can see what a mess everyone is in.

The FTSE jan 1985 to Jan 2010
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With negative returns over the last ten years then the whole insurance and pensions industry could face very tough times ahead. If people put money aside and would have actually been better off in a ISA even before the annual investment fees then the insurance industry looks doomed. It might also explain why insurance rates will go up for years even if claims go down because they do not have the investment returns to maintain them.
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