Search Results for: pension

May 30, 2017

We will soon all have to work into our 70s, claims World Economic Forum ⁰

by Mark Eltringham • News, Workplace, Workplace design

The retirement age in Britain and other developed countries will need to rise to 70 by the middle of the century to head off the biggest pension crisis in history, according to a report from the World Economic Forum. The world’s six largest pension systems will have a joint shortfall of $224 trillion by 2050, imperilling the incomes of future generations and setting the industrialised world up for the biggest pension crisis in history. To alleviate the looming crisis, governments must address the gaps in access to the pensions system and ageing populations as they are the key sources of the widening pension gap. These are the main findings of the new World Economic Forum report, We’ll Live to 100 – How Can We Afford It?, released today, which provides country-specific insights into the challenges being faced at a global level and potential solutions. The report is the latest study to calculate the impact of ageing populations in the world’s largest pension markets, which include the United States, United Kingdom, Japan, Netherlands, Canada and Australia. The issue has implications for the workplace that are already becoming evident as the working population ages and more people choose to defer retirement.

May 11, 2017

Three quarters of people expect to work beyond the age of 65, claims report ⁰

by Mark Eltringham • News, Wellbeing, Workplace

For all the talk about the growing number of Millennials at work, most of the interesting stuff about workplace demographics appears to be happening at the other end of the age scale. A record number of employees now expect to work past the official retirement age and many expect to work up to the age of 85, according to a new study by Canada Life. It claims that 73 percent of UK employees will work past the age of 65, up from 67 percent in 2016 and 61 percent in 2015. More than a third (37 percent) of these could be older than 70 before they retire and 10 percent expect to be at least the age of 85 when they retire, if they can retire at all. Younger workers are particularly likely to expect to work past the age of 65, rising to more than four in five (84 percent) of 25-34 year olds. Many expect to be unable to afford to retire but a growing number will continue to work because they want to.

May 1, 2017

Government should end bogus gig economy jobs, claims parliamentary report ⁰

by Mark Eltringham • Flexible working, News, Workplace

Companies operating in the gig economy and relying on supposedly self-employed workers are denying workers their rights and freeloading on the welfare state, according to a new report from The Commons Work and Pensions Committee. The report cites what it calls “appalling practices” in its inquiry into self-employment and the gig economy. The committee said the numbers of self employed had grown to 5m, or 15 per cent of all UK workers in recent years, fuelled in large parts by the firms like Uber and Deliveroo, whose business models rely on a largely self-employed workforce. In its report the Work and Pensions Committee says Government must close the loopholes that are currently allowing “bogus” self-employment practices, which are potentially creating an extra burden on the welfare state while simultaneously reducing the tax contributions that sustain it.

March 28, 2017

Surge in the number of people working into their seventies ⁰

by Neil Franklin • News, Wellbeing, Workplace

The number of British people working past 70 years old has increased markedly over the past four years. Poor pensions, personal choice, greater life expectancy and changes to pension laws have all been highlighted as factors behind the increase in the latest report on demographic trends from the Office of National Statistics (ONS). The largest increase was seen amongst women, with the proportion of women working into their seventies doubling from 5.6 percent in 2012 to 11.3 percent last year. Around 150,000 women over seventy are now thought to be working. Meanwhile, the number of men working past the official state pension age has also increased, but at a slower rate, from 10 percent in 2012 to 15.5 percent last year.

February 28, 2017

Almost half of over 55s will work past retirement age, but need bosses support ⁰

by Sara Bean • Flexible working, News, Wellbeing, Workplace

A majority of older workers (55+) in the UK are bracing themselves to continue working until they are 70 years old, but three quarters of employees don’t think employers are doing enough to support them, according to new research by the CIPD. In a survey of more than 1,600 UK employees, more than a third (37 percent) believed that they will have to work past the widely accepted retirement age of 65, a figure which jumps to 49 percent among workers over 55 years old. Among those who predict they will work past 65, the average age they expect to actually retire is 70. The most common reasons for employees wanting to work past 65 the belief it will keep them mentally fit (32 percent), followed by a desire to be able to earn enough money to continue to enjoy themselves. However, the research has also found that many employers aren’t doing enough to support older workers in the workplace. Just one in four (25 percent) employees believe that their employer is prepared to meet the needs of workers aged 65 and over, demonstrating how much work organisations need to do in order to prepare for the increased numbers of older workers in the workplace.

February 28, 2017

Working significantly past the state retirement age is a threat to recruitment and retention, claims study ⁰

by Neil Franklin • News, Wellbeing

Rising numbers of employees working past traditional retirement ages is a potential threat to recruitment and retention, new research from employee benefits consultancy Portus claims. Its study of 103 HR executives and 1,043 employees claims 41 percent of HR managers believe they face looming problems in retaining and recruiting new staff if existing employees are unwilling to retire or can’t afford to. Employment data shows 1.19 million over-65s are still working – slightly down on the 1.202 million peak at the start of 2015 – but still nearly double the 635,000 over-65s in the workforce in 2006. Working past 65 is increasingly seen as an option by employees, the study claims. It found just 29 percent of employees have ruled out working past 65. Younger workers – who face higher state pension ages – are the most likely to work past 65 with just 23 percent of those aged 25 to 34 saying they will definitely stop work by 65.

February 14, 2017

Level of wellbeing higher for those who ‘wind-down’ into retirement ⁰

by Sara Bean • Flexible working, News, Wellbeing, Workplace

New research into the effect of retirement on wellbeing commissioned by The What Works Centre for Wellbeing claims that those who gradually reduce their working time with more flexible hours improve their levels of wellbeing. The study looked at all existing research and found that part-time working towards the end of our careers improves life satisfaction. It advises that employers should support older workers to ‘wind-down’ into retirement with bridging jobs or reduce their working hours to avoid poor wellbeing, a new international study reveals. However, the research highlights that this depends on whether employees had control over when they retired, rather than being forced out through ill health or restructuring. If people take up bridging jobs because of financial strain, their wellbeing drops. Even after accounting for income and health, wellbeing is higher for those who have control over the timing or plan for their retirement, and voluntary retirees derive greater pleasure from free time in retirement. On the contrary, wellbeing is lower for those who are involuntarily retired, especially due to health reasons.

February 7, 2017

Brexit impact on UK’s future workforce size could undermine productivity ⁰

by Sara Bean • Knowledge, Legal news, News, Technology, Workplace

With the UK facing at best, very slow growth, or even shrinkage, of the working population, future changes to migration levels into the UK due to Brexit could exacerbate the financial stresses and strains caused by the UK’s aging workforce. This is according to the Mercer Workforce Monitor™ which claims that companies will need to invest heavily in automation, sectors of society historically under-represented in the workforce and look at ways of increasing productivity. According to the analysis, since 2013, the levels of EU and non-EU born immigration into the UK workforce has filled a gap left by the aging of the nation’s UK-born workforce which sees more in this group leave the workforce – through retirement, emigration or death – than enter it. National growth is closely linked to workforce growth; so reducing its future size would create major headwinds for the UK economy and since another 3.4 million people will reach the age of 65 in 2030; unless the UK decides to make drastic changes to the funding of pensions, health and social care, this smaller working population will be required to proportionally spend more of their income to care for their older citizens.

January 12, 2017

Brexit uncertainty won’t dissuade UK workers from moving jobs this year ⁰

by Sara Bean • Flexible working, Legal news, News, Workplace

Employee confidence in the UK has not been shaken by uncertainty around leaving the European Union, as 48 percent admit that they will be looking for a new job this year, claims a new survey by REED. The YouGov research asked more than 2,000 people about their careers in 2017, and found that 43 percent of employees are feeling optimistic about their career prospects, despite uncertainty created by the Brexit vote. Business confidence is also high with 53 percent of UK workers receiving a pay rise from their employer, compared to 41 percent found in the REED Market Insight 2015 – an increase equating to almost an eighth or an estimated four million UK workers according to recent ONS employment stats. While an increase in salary is still the primary motivation for people to look for a new job (51 percent), almost 38 percent (four in 10) would/ have move(d) for a better work-life balance and 33 percent, a third, for a better working environment.

January 11, 2017

Money worries undermine performance of one in four workers says CIPD ⁰

by Sara Bean • News, Wellbeing, Workplace

A quarter of people are suffering with money problems so substantial that it is affecting their ability to do their job, claims a new survey published by the CIPD and Close Brothers Asset Management. Physical fatigue caused by lost sleep when worrying about money, is the most common explanation for how financial concerns have impacted people’s productivity, effecting one in five employees (19 percent). The number reporting problems rises to a nearly a third (31 percent) among 18-24 year olds, and those living in London (32 percent). The problem is not limited to low earners either, with one in five (20 percent) of employees earning £45,000 to £59,999 saying that financial anxiety has affected their ability to do their job. Meanwhile, women are more likely than men to report that money worries are affecting their work, with nearly three in ten (28 percent) women reporting the problem, compared with less than one in four (23 percent) of men.

December 20, 2016

Technology industry leads the way in adoption of flexible working ⁰

by Mark Eltringham • Flexible working, News

New research from My Family Care and global recruitment firm Hydrogen claims that when compared with all other industries, the technology sector has the most number of employees taking advantage of flexible working practices. Over four in five (81 percent) of employees who work in tech say they work flexibly to some degree – around 15 percent higher than the average of 66 percent and over half of the 265 people surveyed said they worked remotely at least one day last week – 18 percent higher than the average for all employees. The research also claims that people who work in tech put a high value on flexible working when considering a job offer, with 88 percent of professionals considering it to be more important than other benefits like private healthcare insurance, enhanced pension scheme or commission or bonuses.

December 9, 2016

Baby boomers better off at work but their wellbeing must be managed ⁰

by Sara Bean • Flexible working, News, Wellbeing, Workplace

A new report on the state of the public’s health and wellbeing, ‘Baby Boomers: Fit for the Future’, by Professor Dame Sally Davies, the Chief Medical Officer for England, advises that good quality work is good for baby boomers’ health and that employers have a role to play by helping their staff to remain healthy enough to stay in employment. According to the report on those aged between 50 and 70, there is an increasing body of evidence that for most people ‘good work’ is good for personal health, organisational productivity and economic prosperity. It also advises since many people define themselves and their position in society in terms of their job, staying in employment is also a significant contributor to self-esteem. The report also finds there is promising evidence that the continued social engagement that some people find in employment may defer the onset of cognitive decline and the risk of dementia.