Showing posts with label pensions. Show all posts
Showing posts with label pensions. Show all posts

Sunday, 28 February 2016

Too old to rock and roll? Forget it! Welcome to 21st century ageing.



The so-called WASPI campaign for women affected by the change in their retirement age from 60 to 66 has been a feature of news and comment for a while now. It is one of those odd quirks - not always a good one - of policy changes that some people are caught in the change meaning that, while nearly everyone accepts that the new policy is a good one, they also want it not to affect those caught in the change. In a society where women are not excluded from the workforce and where efforts are made to treat those women equally, there is no justification for having a different retirement age for men and women. Nor, given average life expectance pushing 80 years, is there much sense in younger people being taxed to provide twenty years or more of living for those older people.

But I don't want to discuss this issue but rather for it to provide a little context for a look at age discrimination in the UK. This has interested me for a while but was prompted by someone tweeting a rather unfunny quip about all of UKIP members being old dodderers. It wasn't that UKIP's members aren't disproportionately older but that it was fine to criticise - with references to Stannah and Saga - a group of people purely on the basis of their age. My concern though isn't that some people are unpleasant but whether this disparaging of older people is reflected in a wider set of prejudices that result, not in rude words on Twitter, but in significantly different treatment.

One of the WASPI arguments (albeit not their strongest) is about work. Or rather that women in their 50s and 60s find it difficult to find work:

Living longer inevitably means working longer too. But that’s no help to older women who can’t just grit their teeth and work longer as a result of Osborne’s measure, because they’re not even working now: women made redundant late in their fifties, who can’t persuade employers that they’re not past it;

Now I'm happy to believe Gabby Hinsliff here. I want to believe her. But I find it difficult to find much real evidence that older people can't find work. The number of people over 65 working in the UK has nearly doubled since 2008 hardly an indication that the people made redundant in their 50s will fail to get a job. What I do suspect is that men and women who leave management or professional positions in their 50s find it hard to get a similar job on a similar wage - I've known people who had very senior jobs really struggle to get new employment. For a few there's also the issue of declining health. But there remains something of a cult of youth reflected in the attitudes of the, mostly younger, recruiters.

In short, faced with two equally qualified candidates the recruiter will pick the younger one - "they'll fit in better", "more scope for development", "planning for the future". All quite understandable until you think about the actual facts. The average time people stay in a given job has been falling for years - Forbes reported that 'millennials' (can I say how much I hate that unhelpful term) are switching jobs every 4.4 years. So if you've a well-qualified 59 year old woman in front of you, don't think 'she'll be retiring soon', think 'up to eight years contribution from a really experienced person - more if she wants to stay longer'.

Another, more subtle piece of ageism, is a political act - typified by former MP, David Willetts in his book 'The Pinch':

David Willetts shows how the baby boomer generation has attained this position at the expense of their children.Social, cultural and economic provision has been made for the reigning section of society, whilst the needs of the next generation have taken a back seat. Willetts argues that if our political, economic and cultural leaders do not begin to discharge their obligations to the future, the young people of today will be taxed more, work longer hours for less money, have lower social mobility and live in a degraded environment in order to pay for their parents' quality of life.

It's hard to see how we reconcile this polemical view of my generation - selfish, greedy and so forth - with the WASPI victimhood or the anecdotes of declining income as older people take the only jobs they can get, well below their skills and experience. Yet that is what's happening - we're told (with good reason) that more and more of the government's spending is directed towards the old and we're supposed to get agitated because some how this is an imposition on the young while at the same time the established image of the poor old folk struggling away on a pittance sticks in the public's mind.

And yes it's true that we should stop with this emotive nonsense about 'the family home' or 'life savings' and expect older people to use that money to look after themselves. It really is an imposition on younger people to expect them to provide for older people just so they can pass on loads of expensive assets to their children and grandchildren. Indeed this is the only proper response to the issue starkly described by James Delingpole writing about the NHS:

That’s the good side. Now the bad — and it’s so bad I’m surprised it isn’t more of a national scandal. We read a lot about a service stretched to breaking point but what few of us grasp — I didn’t until I saw it myself — is perhaps the main contributory factor to this: bed after bed occupied by elderly, often Alzheimer’s-afflicted patients who simply don’t belong in wards designed to treat acute, short-term conditions.

Round about 75% of all the money spent by the NHS is spent in one way or another on the elderly. It's not just the 'bed-blocking' Delingpole describes but the industrial quantities of medication that the average pensioner chuffs down everyday, the repeated visits to the GP and the collection of special tests, injections and clinics directed to pensioners. All of this - except the de facto role of hospitals as old folks' homes - is entirely justified since it means more and more people living happy, healthy and active lives into their dotage.

Not only are those old people expensive but there are also more and more of them selfishly and greedily staying alive longer and longer. And this will carry on (perhaps with the exception of rock stars whose lifestyles perhaps preclude longevity) as our contemporaries - I speak as one of those 'boomers' - dash about filling up theatre seats, cruise ships and tea shops while driving carefully within the speed limit in front of the next generation of future selfish old folk.

Now I know a lot of young people will go 'ewww' at this but they've to get used a world quite unlike the one I was brought up in - a world where fashion, music, food and drink, art and travel markets are dominated by the middle aged and upwards and where 'youth culture' is a minority sport in every sense of the word. And this isn't because we've sucked up all the cash but because there are loads of us, we've earned a load of money during our lives and the bit of that cash we've got left we're planning on spending living well.

The ageism that Gaby Hinsliff alluded to in her article about the WASPIs may indeed be the case (although it's hard to find solid evidence for it) but it's a fact that's days are numbered. Not because of some sort of national campaign or shouty MPs but because the market tells us you'd better start respecting older people if you want to stay in business.

There's a bar in Harrogate called (creatively) The Blues Bar and it does more or less what it says on the tin. We're there listening to some good blues rock and, looking around, the whole audience is our age or older - no plaid, no slippers and no comfortable stretch slacks but rather jeans, casual shirts and even the occasional band t-shirt. This is the reality of 21st century ageing.

So however po-faced David Willetts gets, I'm convinced that he's wrong. Us 'boomers' do have a duty - it's not to subsidise the next generation or to get trapped in an inter-generational version of the lump of labour fallacy but rather to have as good a time as possible in the two or three decades left to us on this earth. To travel, to party, to eat, drink and enjoy the bounty of the great world we've helped create - we are the richest generation there has ever been and we should enjoy that wealth rather than find reasons to say 'it's not fair'. The next generation, without a shadow of doubt will be even richer than us, will live even longer and - I hope - will have an even better time with their last couple of decades.

We've a long way to go yet. Organisations like Age UK (and the WASPIs for that matter) are still stuck playing the 'poor old folk' card when in large measure that simply isn't the case at all. For sure, there's age discrimination - from nasty little quips on Twitter through to the difficulties redundant managers have in getting jobs - but in the place that really matters, in the consumer markets, older people are the kings and queens. Let's enjoy it!

....

Monday, 15 February 2016

Banning political campaigns with public funds - it's because it's not your money

****

The government has told public bodies that they can't use procurement as a tool of political campaigning. There has been the predictable outcry from those who want to use public money to promote a geopolitical agenda, usually wrapped up in the now almost meaningless word "ethical":

“The Government’s decision to ban councils and other public bodies from divesting from trade or investments they regard as unethical is an attack on local democracy.

“People have the right to elect local representatives able to make decisions free of central government political control. That includes withdrawal of investments or procurement on ethical and human rights grounds."

I'm afraid not. For the very simple reason that it's not your money, it's not there for you to conduct political campaigns. In the case of the budgets for local government, NHS Trusts and other public bodies the money is there to deliver the services for which those organisations exist none of which is remotely connected to foreign policy. To use that money - at a cost to local people - to seek to change the policies of a government far, far away is truly unethical unlike the make-believe 'unethical' of the political campaigners.

And for those pension funds that these supposedly 'ethical' campaigners want to use for political purposes - that's completely unethical if not downright immoral. It really, really isn't your money - it's the pensions of millions of public servants and you've no right at all to compromise those people's future wellbeing for the sake of your political campaigns.

So the government is absolutely right to take it very seriously when local councils or other public bodies seek to prosecute their foreign policy using public money - especially when it runs counter to that government's foreign policy and to treaty obligations in respect of international trade.

....

Wednesday, 15 August 2012

In which Liberal Democrats channel the spirit of Robert Maxwell...

****

Robert Maxwell, former Labour MP and rapacious capitalist famously robbed the pension funds of his employees at the Daily Mirror and elsewhere to bail out the problems of his business. We looked on in horror as this bloated socialist exploiter ripped off ordinary workers.

It seems that the Liberal Democrats - in search of a gimmick - have decided to learn from Bob and rip off members of pension funds. In this case to build housing that the normal (private sector) funders won't provide finance for:

Funded by public sector pension funds, the 300,000 properties a year target would more than double the current rate of housebuilding.

Building this many homes (just building - we would need to buy the land too) will cost about £30,000,000,000 each year (let's call this £30 billion). The income of local authority pension funds in 2010/11 was £10.6 billion made up from employee and employer contributions plus investment returns.

Even if the existing development funding system generated 150,000 houses (for 2011 the figure was a tad short of 120,000) that would still require £15 billion each year. This could only be achieved by redirecting funds from other investments. If the Liberal Democrats want this to continue for the five-year lifetime of a parliament that would require £75 billion - 50% of all the funds under investment by local authority pension funds.

So we have a scheme that redirects funds from profitable investment intended to secure a decent pension for the funds' members. And places that money into property schemes that the private sector will not finance - presumably for lack of confidence in the anticipated return.

This would be morally bankrupt and criminally stupid.

.....

Monday, 19 March 2012

Understanding trade unions...a thought about pensions

****

To what extent this applies in the UK, I'm not sure but:

...labor overhaul is something of a make-or-break moment for Italian labor unions, which still hold sway over negotiating national labor contracts and have held a series of demonstrations against the changes. But today, the unions represent more retirees than workers, and younger Italians have come to see them as part of the problem.

Given the age profile of public sector employment (at least here in Bradford), it seems to me that pensions rather than wages will come to dominate trade union activism - indeed, many public workers seem far more keen to strike over pensions than over wages.

....

Wednesday, 25 January 2012

In which I agree with Cllr Greenwood...

****

The nannying fussbuckets have been badgering at the West Yorkshire Pension Fund:

Health campaigners have criticised West Yorkshire Pension Fund after research found it has £125 million invested in the tobacco industry.

Apparently this is unethical because these health campaigners don't approve of the investment. However, Cllr Greenwood, as Chairman of the Fund responded correctly:


“Decisions should be taken entirely on commercial grounds.” 

Hallelujah! Perhaps the anti-smoking fanatics will go away now (but somehow I doubt it)

....

....

Wednesday, 2 November 2011

Reasons why you shouldn't support the Liberal Democrats No. 436,738

****

Because they're just tax and spend social democrats:

Proposals to impose tax on lump sums withdrawn from their pension pots by the newly-retired will be set out today by a think tank linked to the party leadership.
They would affect anyone taking out more than £42,000 as a lump sum on retirement. Currently pension-holders can withdraw £450,000 from their pot tax-free. 

Look you pseudo-socialists - people have already paid tax on that money. You know that income tax stuff.

....

Friday, 16 September 2011

Because there isn't a good enough return maybe?

****

The Communities and Local Government Select Committee (prop. Clive Betts MP) are asking why large pension funds aren't investing in social housing:

Mr Betts said housing associations represent ‘an ideal instrument’ for pension funds and other institutional investors.

‘I want [social housing] to be something that pension funds and other institutions invest in,’ explained Mr Betts. ‘I very much want to hear evidence on this issue. We want the people who have the money to tell us what they want to invest in.’

I agree with Mr Betts - pension funds have been very reluctant to invest in residential rent opportunities of any kind but - and it's a big but - now they're interested in the sector, why on earth should they invest in social housing with rents at £300 per month when that can invest in market rented property at £1,200 per month?

The reduction (virtual removal) of grants for social housing and the structure of rents makes the social housing sector unattractive as an investment.  Perhaps we should be looking more closely at the way rents are determined - perhaps through a housing allowance system rather than the setting of artificially low rents? That would make such investment very attractive given the current housing market pressures.

....

Friday, 5 August 2011

A question - does this view reflect the age profile?

****

From a survey:

A survey of 1,000 employees working in public sector organisations found they were “desperately” holding onto their pension packages in the face of planned changes announced by the government.

Teachers and civil servants have already taken strike action over the reforms and unions continue to threaten further disruption later in the year if the row is not resolved.

Recruitment firm Badenoch & Clark said its study showed a majority of public sector workers believed their pensions were worth striking over.

And the age profile of public sector employees? I can't speak for the whole sector - although I suspect the profile will be pretty similar - but in Local Government 68% of the workforce is aged over 40. So it shouldn't really surprise us that pensions are perhaps more important than pay - especially when they are final salary, index-linked pensions.

...

Wednesday, 6 July 2011

Tell me again about those strikes?

****

The latest figures confirm the public-private sector pay gap:

Information released by the Office for National Statistics (ONS) yesterday revealed that public sector workers are paid on average 7.8% more than their private sector counterparts. This figure has risen by 2.5% since 2007, when the pay gap was estimated to be around 5.3%.

And an index-linked, final salary pension to boot!

Forgive me if I don't weep beef tea at the plight of public sector workers.

...

Monday, 13 June 2011

You're all right, Ian!


Dave Prentiss, the highly-paid leader of Unison is leading the charge:

'It will not be one day of action. We know that won’t change this government’s mind. It will be long-term industrial action throughout all our public services to prevent destruction of our pension schemes.'

Yes, that's right. The pensions of public sector workers are being ripped away, cast aside - there will be thousands of retired clerks starving in the gutters. Revolution will fill the air...

...perhaps not - the dispute is over:

Treasury plans to increase public sector staff pension contributions by an average of 3% from next year.

In order that public servants may - in one form or another - maintain a vastly better pension scheme than the rest of us mere mortals (the one's who, working in the private sector, actually earn all the money) they are being asked to pay a few quid more in contributions. Sounds like a deal to me!

And all this while Mr Prentiss - supported with enthusiasm by Labour Councillors - ensures that member subscription aren't paid out on anything prosaic like the wages of union convenors:

But Bradford Council leader Ian Greenwood said at a time of massive threat, union representatives were clearly important to staff and to the Council as it negotiated through what he described as “the most difficult time our Council has ever seen”. 

So it's OK that, while we shut down libraries and swimming pools, Bradford Council should spend half-a-million pounds on subsidising unions? Cllr Greenwood wouldn't be a member of Unison now, would he?
 
Nothing changes. The Labour Party will always put the interests of its pals running the unions ahead of the public.

....

Saturday, 9 April 2011

Campaign Diary: Day Five - gardening and e-mails

I know, it's Saturday and the sun is shining - should be out there voter bothering! But we took the day off to do so gardening (see results above) - still managed to get some leaflets dropped with deliverers and to get a new deliverer too!

Also I've got off a load of e-mails to people I dealt with over recent times - always careful with this as we all get plenty of spam. However, it's a good idea to send a nice, personal note to people I've helped over the past few years - so I've done so.

As far as the politics is concerned, the good news of the pension changes is swamped by the annoyance among existing pensioners - who, of course, aren't getting the extra money! And it's the pensioners with savings or a second income who are squealing - they don't get all those pension credits.

Back tomorrow - after a day charging round the farms, barns and cottages that fall into the delivery round entitled: "remote".

....

Thursday, 10 March 2011

What's wrong with a sixty-year-old copper?

Lord Hutton has pronounced and, as I'm sure we could have predicted, the public sector unions are sharpening their pitchforks and lighting torches ready to march on the castles of power. I don't however intend to comment about the report since, dear reader, I haven't read it (something I suspect those journalists interviewing council workers on funded superannuation schemes should have done).

I was however very struck by the response of the Police Federation - or rather their spokesman on the radio - to the part that saw police retirement age rise to sixty. In this man's view:

We don't want sixty-year-old policemen walking the streets do we!

Thinking about this for a minute, it struck me that there's no justification for this argument anymore - and I'm not just saying this because I'm past fifty now! I look at the men and women jogging, riding bikes and much else besides - many of who are over 60 - and see no reason why there should be (fitness aside) any problem at all with a copper of this age. And is there really much difference between fifty-five and sixty? Surely what matters is whether the person is fit to do the job not how old that person is?

....

Thursday, 4 November 2010

Go on BBC News - go on strike. We don't give a fig, you know.

It’s hard to be sympathetic with very well paid BBC journalists who may (or may not depending on a revaluation and the impact of indexing changes) get a marginal reduction to their pensions. A change already agreed with other BBC staff. So I don't care about them striking about it.

But then I’m not going to miss BBC News coverage – it might even be better without Nicky Campbell, Kirsty Wark and assorted other members of our righteous media elite laying their hearts-on-sleeve left-wingedness on us over the airwaves.

.....

Tuesday, 28 September 2010

"I can't dig the garden like I used to..." - some thoughts on getting older.


I thought that, for a change, I’d write about getting old. And how our attitude to age – and the process of getting older – changes and evolves. But first a little story from my Mum.

Many years ago – back in the 1970s – my Mum delivered meals-on-wheels in and around Penge. On one of the rounds there was a couple called Mr & Mrs Squirrel. Rest assured that these are human squirrels rather than the beady-eyed, bushy-tailed variety. Now Mr & Mrs Squirrel were well into their nineties – which back then was deifinitely a ripe old age – and lived in a sizeable house in Sydenham (or rather that bit of Penge that folk liked to call Sydenham so as to avoid using the ‘P’ word).

On one occasion, my Mum was delivering Mr & Mrs Squirrel’s dinner and she got to chatting with Mister. He explained how – it being a nice day and all – he had been out in the garden pottering about. After a few minutes chatting about the garden (my Mum being an especially keen gardener), Mr Squirrel complained that:

“I can’t dig the garden like I used to.”

And therein lies the point. This elderly – very elderly – gentleman refused to accept that the things he did in days past were no longer possible. Digging the garden may take a little longer, he might not be able to dig as deep or turn as much soil but we’re going to dig! And so it should be.

However, as we age, society still expects us to become less able and more dependent until we reach a point when in our dribbling, dotage others must care for us entirely. And much planning for this seems to assume that old age begins at 50.

I’m not joking here – nor am I moaning about the rapidity at which my 50th birthday approaches. Planning for services assumes that someone aged 51 has similar needs to someone aged 97 (ceteris paribus). Housing strategies for older people begin at 50. Saga holidays begin at 50. We are old at 50!

Except we’re not. Old that is – not even remotely old. Most 50 year olds in England can expect to live at least another 30 years – nearly all of those years independent and active. While three of my four grand parents were dead by the age of 76, my son’s grandparents are all alive and all past that age (with three passed 80). And all those people are living in their own homes, driving their own cars, feeding themselves and getting on with enjoying life. In truth they place a little more of a burden on health services – the jokes about rattling with pills do apply – but they are not old in the way previous generations were old.

All this is a good thing – unquestionably. But costly. The entire system of pensions, healthcare and social care is predicated on most people dying in the ‘70s rather than – as will be more and more the case – in their ‘80s or even ‘90s. And, as medical and surgical interventions allow (wonderfully) further extension to active life, those costs will continue to rise.

The question for us all is how much longer the present system can last until it breaks beyond repair. We can’t carry on with the assumption that our property assets will remain undisturbed by the costs of old age. And we have to recognise that pension schemes beginning at ages below 60 are unsustainable. We must also question why we have not raised the retirement age for the ‘active’ professions – police, fire, army and so forth. Finally, we will get used to the idea of people working well into their ‘70s – perhaps not full time but working nonetheless.

The market – as we see from adverts, new products and the images of older people used therein – has already got there. Sadly, the public sector – and the delivery of its services – remains stuck in the 1970s. Time to catch up I guess?

....