WESTMINSTER “THERE’S NO MONEY FOR CARE IN SEFTON” MEETING CONTRAVENES “NO MONEY IS NOT AN EXCUSE” HIGH COURT RULING.

SEFTON CARE ASSOCIATION

PRESS RELEASE

May 22, 2012.

WESTMINSTER “THERE’S NO MONEY FOR CARE IN SEFTON” MEETING CONTRAVENES “NO MONEY IS NOT AN EXCUSE” HIGH COURT RULING.

Sefton Care Association (SCA) has been told “there is no money” to pay for the shortfall and backdating of care fees frozen by Sefton Borough Council – in direct contravention of a High Court ruling that says “no money is not an excuse”.

Members of SCA met with Care Minister Paul Burstow, John Pugh MP, Sefton Borough Council Chief Executive Margaret Carney and other officials in Westminster, but before SCA could put its case, the “there’s no money” line was delivered.

“As soon as that was said we realised that not only was our meeting a waste of time, but also that the situation had not been properly researched,” said Dan Lingard of Sefton Care Association.

“As the meeting was conducted under Chatham House Rules, we can’t say who said there was no money – but it was said nevertheless.

“Sefton Council has already defied a High Court ruling and told care home owners and the borough’s vulnerable that it will be freezing care fees for both 2011/12 and 2012/13, a dispute which led to SCA committee members being invited to Westminster to discuss the issue.

“But it’s clear there was no intention of arriving at any sort of a conclusion in that meeting which would be of any benefit to people needing care, or care home owners and operators – especially when we were told ‘there’s no money’.

“But what people in the meeting seemed to have lost sight of is that the High Court ruling in November 2011 said that lack of resources is no excuse for not fulfilling care obligations.”

In paragraph 90 of the ruling, His Honour Judge Raynor QC, sitting as a judge of the High Court, quoted an earlier precedent and ruling: “In paragraph 46(2) of his judgment in the Forest Care Home case, Hickinbottom J stated: ‘In deciding whether a person is in need of care and accommodation, an authority is entitled to have regard to its own limited financial resources. However, having set that threshold and found that a particular person surpasses it, an authority is under an obligation to provide care and accommodation in fulfilment of its section 21 obligations (under the National Assistance 1948), which is a specific duty on the authority owed to an individual, not a target duty: lack of resources is no excuse for non-fulfilment of that obligation…’

“The Claimants (Sefton Care Association) submit that the evidence in this case shows that the decision to freeze fees was taken for budgetary reasons alone or at least to an improper extent, without there being any attempt to balance other factors against the need for financial savings.”

Dan Lingard said: “In other words, no money is not an excuse – care obligations must be fulfilled, and they are not being fulfilled by a freeze in care fees, which, given inflation and other factors, means that not only have care fees been frozen – they’ve actually fallen.”

Judge Raynor ruled that Sefton Council should not have frozen 2011/2012 payment levels to elderly people in care in the borough, and that it did not pay due regard to the actual cost of care in making its unilateral decision. He directed Sefton Council to enter into consultation with local care homes, and to reassess care payments for the 2011/2012 financial year – and establish the actual cost of care by which care fee rates could be set.

But Sefton Council not only ignored the February 9, 2012 deadline to respond, it has also said it will freeze care fees retrospectively, and for the 2012/13 financial year as well – meaning that care fees have been static despite the Retail Prices Index rising nearly 12% in the three years since care fees were last increased.

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For further information:

Iain Macauley 07788 978800

im@pressrelations.co.uk

@SeftonCareAssn

YORKS AND HUMBER OLDIES FIVE TIMES AS LIKELY TO EXERCISE TO IMPROVE THEIR SEX LIFE AS NORTH EAST NEIGHBOURS.

SAGA

PRESS RELEASE

September 30, 2011.

YORKS AND HUMBER OLDIES FIVE TIMES AS LIKELY TO EXERCISE TO IMPROVE THEIR SEX LIFE AS NORTH EAST NEIGHBOURS.

Five times as many older people in Yorkshire and Humberside use exercise to improve sex in later life compared to neighbouring North East of England.

That’s just one finding of an independently-conducted study commissioned by over-50s group Saga which also found that five times as many over-50s men compared to women say they’ve embarked on their exercise regime to improve their sex life.

The research, carried out the study in the run up to Older People’s Day on October 1, showed that over-50s are chasing improved fitness levels in later life, with the vast majority of older people citing health improvement or active-life extension as the main reason for pavement pounding and Wii Fit workouts – and Wii Fit has overtaken bowls as a way of staying in shape.

Around 38% of 50-somethings flex their muscles for between two and five hours a week – a level fitness experts say is likely to be life-enhancing – but more people put in the hours the older they get: 44% of 65 to 69-year-olds exercise for up to five hours, with the better-off are even more likely to put in the effort.

“It’s really beginning to dawn on the older generations that the now defunct default retirement age is not a count-down to the nursing home, but the start of the ‘bonus years’ – and to make the most of the opportunities in work and play, they need to have a decent standard of fitness: so more older people are spending more time exercising, and feeling the benefits on many fronts,” said Dr Ros Altmann, Director-General of Saga.

41% of 50 to 54-year-olds did no exercise or “less than an hour” a week compared to 30% of 65 to 69-year-olds; and while 38% of 50 to 54-year-olds did between two and five hours of exercise, 44% of 65 to 69-year-olds committed to the same level of exercise, with 62% doing between two and ten hours exercise a week.

But fitness for older people is not all about tea dances and bowls: one in 25 over-50s, and one in 50 aged 75 use Wii Fit as a way of keeping fit. More admit to using Wii Fit as a means of exercise than bowls, and is equivalent to those who jog.

Meanwhile, five times as many over-50s men compared to women say they’ve embarked on their exercise regime to improve their sex life.

But five times as many older people in Yorkshire and Humberside use exercise to improve their physical relationship compared to the neighbouring North East.

80% of Saga panellists say they are more conscious of the need to exercise and live a healthy lifestyle now than they were in their 30s. A quarter of women say they exercise more now than in their 30s.

Over-50s also believe maintaining their mental fitness is important - 99% agree that it is ‘very important’ or ‘important’ - and crossword puzzles, Sudoku, and TV quiz games were the most popular forms of mental exercises (60%, 40% and 36% respectively doing each). One-in-ten use electronic brain-training games.

Populus interviewed 10,483 Saga customers, all aged 50+, online between 12 September and 15 September 2011. Populus is a member of the British Polling Council and abides by its rules; for more information see www.populus.co.uk.

Ends

For further information:

Saga Press Office
01303 771529.

www.saga.co.uk

Iain Macauley
im@pressrelations.co.uk
07788 978800

CII REPORT: PENSION “TREASURE TROVES” ARE NOWHERE NEAR BIG ENOUGH FOR LATER LIFE CARE, SAYS SAGA.

DR ROS ALTMANN

DIRECTOR-GENERAL, SAGA

PRESS RELEASE

September 14, 2011.

CII REPORT: PENSION “TREASURE TROVES” ARE NOWHERE NEAR BIG ENOUGH FOR LATER LIFE CARE, SAYS SAGA.

The glammed-up treasure trove of private pension pots could turn to dust for the majority of the population requiring care in later life.

Dr Ros Altmann, Director-General of over-50s group Saga, says that the findings of a report by the Chartered Insurance Institute (CII), entitled “Who cares?”, highlights that despite the recent Dilnot Commission, the public remains unaware of the real cost of long-term care and the need to make personal provision to meet costs.

“Around 80% of people have no idea of how much they will have to pay for care, and around half think long-term care is free at the point of use - but today’s average pension pot will fall well short of funding long-term care costs for the one in four of us who will need it,” said Dr Altmann, who has written a chapter of the report.

“According to the Dilnot Commission on Funding of Care and Support, the current average long-term care bill is £26,000 a year, the average length of stay in a care home is two years, but the current average pension income is often only £10,000 a year, leaving a huge annual deficit.

“The key is developing an awareness and national culture of saving for later life. While private pensions may have been sold as later-life treasure troves alongside images of Mediterranean villas or sumptuous retirement apartments, the fact is that we’re in the midst of a pensions crisis which will provide many people with a far more down-to-earth later life – but the impending care crisis will dwarf it by comparison.

“There is not enough money being put aside privately or publicly, and the vast majority of the population is hoping they won’t need care, when statistically at least one in four people will need it.

“The Dilnot report highlights how failure to adjust social care policy over time has left care under-funded across the board – at national, local and individual level. The welfare state was designed in the 1940s, when the idea of millions of people living to advanced old age was unheard of. Policy has failed to move with the times and is not fit for the 21st century.

“Past Governments have failed to help people prepare for care, even though at least one in four of us will require expensive care in later life. The current system of long-term care funding is haphazard, inefficient and unsustainable.

“Government spends over £100bn on benefits, over £50bn on the health service and just £8bn on care, leaving millions of vulnerable older people at risk. The issue is that people are now living so much longer than before, which is actually great news, but our support systems are being overwhelmed.

“This means most people’s whole life savings are at risk, but many do not realise this. Of course, unlike pensions, not everyone will need care, so insurance against future care costs is one obvious potential solution. However, potential care costs that need to be insured against are unlimited, so it is impossible to find affordable insurance to give full peace of mind, and it is difficult to devise policies that will provide real peace of mind.

“There are potential solutions that could be introduced, though: For example, Care ISAs, allocating an annual pension-style allowance to provide for care, incentivising employer care plans with proper tax relief, adapting annuity rules to allow pension funds to be used to buy ‘Care Pension Annuities’, with a lower starting income but which would then provide much larger sums in later life if care is needed.

“Equity Release is inevitable, since most people needing care will probably have to access some of the value of their property; Another potential savings product that would be facilitated by a cap on private care costs would be ‘Family Care Plans’. Four family members could club resources together and save in a joint-account to ensure, say, that one of them will have their care needs covered up to the cap.”

Ends
Further information:
Dr. Ros Altmann
Director-General, Saga
ros.altmann@saga.co.uk
www.saga.co.uk
07545 504513
Twitter @SagaRosAltmann
Saga Press Office
01303 771529.

Iain Macauley
im@pressrelations.co.uk
07788 978800

HSBC’S DECISION TO CLOSE CARE ADVICE BUSINESS PROVIDES A FURTHER CHALLENGE TO THE DILNOT COMMISSION.

SAGA

PRESS RELEASE

July 6, 2011.

HSBC’S DECISION TO CLOSE CARE ADVICE BUSINESS PROVIDES A FURTHER CHALLENGE TO THE DILNOT COMMISSION.

Commenting on HSBC’s decision to close their long term care advice division in July 2011, Dr Ros Altmann, Director-General of over-50s group Saga said:

 “The timing of HSBC’s decision to withdraw their long term care advice service from the market is a real disappointment, particularly as the Dilnot Commission has highlighted the desperate need for elderly people and their families to receive comprehensive information and advice on the options of paying for long term care,” said Dr Altmann.

“Without this specialist advice there is a very real danger that people will resort to running down, if not depleting their assets to pay care home fees, when there are often alternatives available. 

“Whilst there are other organisations in addition to Saga still offering this complex advice service, HSBC’s decision further highlights the challenge the Dilnot Commission faces when trying to encourage the financial services industry to provide creative products and support in this area.  

“Whilst the government considers its response to the Commission’s recommendations, there are already approximately 150,000* self-funded residents in care, a figure that is only expected to grow. For most people, care is a once-in-a-lifetime matter and people need to know that specialist advice on the current care funding choices is available. HSBC’s decision means there are now fewer places to turn to get such in-depth advice.

“Time is a luxury that many of these families simply don’t have so we urge the government to urgently put in place the working groups recommended in the Dilnot report so that real reform can happen.  Whilst this may not help many of the families with loved ones already in receipt of care, it can give some security and certainty to those with older relatives who may require care in the future. ”

Saga offers a free guide to funding care “Making Sense of Paying for Care” which can be obtained by calling 0800 056 6101 or visiting saga.co.uk/ltc

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Editors notes: * Source Laing & Buisson – Care of Elderly People Market Survey 2010-2011 - number of self-funders in care 2009

For further information please contact the Saga Press Office on 01303 771529.

SAGA: PHASE OUT “PENSION” AND ENCOURAGE SAVERS TO SAVE LIKE NEVER BEFORE.

DR ROS ALTMANN

DIRECTOR-GENERAL, SAGA

PRESS RELEASE

May 12, 2011.

SAGA: PHASE OUT “PENSION” AND ENCOURAGE SAVERS TO SAVE LIKE NEVER BEFORE.

The introduction of a “savers National Lottery” and phasing out the word “pension” from commercial products could re-invigorate long-term savings trends and help head off what seems otherwise to be an almost-certain pensions and care crisis.

Economist Dr Ros Altmann, Director-General of over-50s lifestyle organisation Saga, who is also a former government pensions adviser, says the financial services sector should phase the word “pension” out of all current and future commercial later-life savings products, and start to seriously address decades of mistrust in the whole pensions concept.

“People are wary of saving just at the time when we need savers to save like never before. Long-term saving must be made attractive, possibly even exciting, and certainly be given greater clarity and simplicity. It’s time for savers to have their cake - and eat it,” said Dr Altmann.

“It’s simple. There is not enough money to cover the basic lifestyle aspirations of a population with ever-increasing life expectancy. There is nothing like enough money to cover the cost of care that one-in-three women and one-in-five men will need, and the word ‘pension’ has become so negative that people simply don’t believe there’s any great benefit to be had by paying into one.

“The National Lottery – which probably has more perceived integrity than the personal pension system - yields occasional prize benefits to the lucky few, but with no savings element. Premium Bonds have a savings element but do not accrue interest, so actually lose value.

“But combining the two ideas – winning prizes and accruing interest, having your cake and eating it – is not inconceivable. The more somebody saves, the more likely they are to win, say, a monthly £1 million prize – an evolution of Premium Bonds. The key is legislating such that the investment is ring-fenced and secured in the same way as payments into current personal pension funds, with similarly defined periods before funds could be accessed.”

Ends

Further information:

Iain Macauley

im@pressrelations.co.uk

07788 978800

www.saga.co.uk

GOVERNMENT’S FIRST YEAR, THE BONUS YEARS AND BRITAIN’S BORN-AGAIN WORKFORCE.

DR ROS ALTMANN

DIRECTOR-GENERAL, SAGA

PRESS RELEASE

May 10, 2011.

GOVERNMENT’S FIRST YEAR, THE BONUS YEARS AND BRITAIN’S BORN-AGAIN WORKFORCE.

The coalition government can guarantee bonus years beyond its current term if it continues providing bonus years for Britain’s older generations, and gets big buy-in from the most powerful group of voters.

That’s the message from Dr Ros Altmann, Director-General of over-50s lifestyle organisation Saga, who says that a year into government, the coalition has done a brilliant job of ditching the Default Retirement Age – but now she wants to see the same effort put into other proposals and policies affecting older people.

“There’s definitely an improvement for older people on some fronts, but the coalition’s young front-bench frontline team hasn’t quite got the required appreciation and vice-like grip on all the issues, and what the most powerful group of voters – older people, who are twice as likely to vote as younger generations – want and need,” said Dr Altmann.

“They want ‘bonus years’ – years beyond their 60s when they can carry on working part-time and earning. The legislation is there, as is the potential for legal enforcement of questionable employer tactics, but perhaps not quite the focus of support and creativity to ensure current or prospective employers embrace the concept of part-time work as enthusiastically as the born-again workforce.

“So, in my assessment of the government’s first year, my report would be littered with opposites: the government has delivered some brilliant reforms in its first year, but I’ve also scribbled ‘disaster’, ‘unpopular’, ‘too slow’ and ‘no help’ in the comment boxes too.

“The coalition promised it would 'reinvigorate pensions and retirement'. It certainly can’t be accused of pushing pensions into the long grass - it has been a struggle to keep up with the pace of new proposals. But, overall, it has done more to potentially reinvigorate retirement years than pension plans.

“Older people want to work longer – ideally part-time, whether for pleasure, keeping active, lifestyle, stimulation or money – and to enjoy those bonus years.

“I’m being realistic, not negative, when I say the real downers are around women’s state pension age - but that is part of a bigger picture of raising pension ages being a necessary policy because of ongoing economic issues. We do welcome public sector pension reforms, but there is a deep concern over the unions’ reactions to even these mild proposals. I’m also concerned about the impact of pensions being linked to CPI, and that rock-bottom interest rates and rising inflation may also cause older people problems.

“My final report comment? It would be ‘must try just a little harder – and respect your elders’,” said Dr Altmann.

Ends

Further information:

Iain Macauley

im@pressrelations.co.uk

07788 978800

Twitter: @Press_Relations

www.saga.co.uk

RE-DEFINING ‘OLD’; IT’S NOT 65 - IT’S 93.

DR ROS ALTMANN

DIRECTOR-GENERAL, SAGA

PRESS RELEASE

April 24, 2011.

RE-DEFINING ‘OLD’; IT’S NOT 65 - IT’S 93.

When Her Majesty the Queen celebrated her 85^th birthday on April 21, 2011, she may have finally re-defined Britain’s perception of what is “old”; it’s not 65 - it’s 93.

But the question is who will have the guts to decline Her Majesty for insurance for her cars or foreign travel on age grounds, says over-50s lifestyle group Saga, one of the very few who’d quote the Queen for her Land Rover - or for more than 30 days foreign travel a year.

“If the Queen was living in Buckingham Avenue rather than Buckingham Palace, then, despite her proven ability to match or better world leaders half her age, home or away, she’ll find it a bit tougher to get insurance to drive, or travel abroad. It’s all down to a perception of age and what is ‘old’,” said Dr Ros Altmann, Director-General of Saga.

“In the year the Queen was born, 1926, the definition of ‘old’ was effectively set in stone, and we became stuck with it.

“That definition of ‘old age’ has survived for generations: 1926 was the year the state pension age was set at 65, and established the perception that we’re officially very old and past-it at 65. At the time, around 60% of people did not live long enough to collect their state pension.

“But because of the setting of that milestone, our mindset today says 65 is old – as if every older person around us is an exception rather than the rule.

“In 1926, average life expectancy was 61 for women and just 57 for men, so the pension age was 14% beyond a man's average life expectancy.  In 2011, life expectancy is 82 for women and 77 for men.  14% beyond that would be age 93 for women and 88 for men.  

“So, by this new definition, our Queen may not yet be very 'old'. Indeed, around a fifth of people alive today will live to 100 - and there’s a very good chance that could include the Queen too, given her family’s famous longevity.

“But even people in their 90s and beyond embarrass younger generations with their wisdom and vitality.

“At 85, the Queen is a renowned wit, a handy Land Rover driver, has boundless energy both on public duty and in privately enjoying the great outdoors. But how many times do we meet hugely active older people and say, ‘you can’t be that old, surely?’ They should actually be considered the rule, not the exception.”

Ends

Further information:

Iain Macauley

07788 978800

im@pressrelations.co.uk

www.saga.co.uk

WAITING FOR GOD – AND ANDREW LANSLEY, TOO; HEALTH BILL ‘PAUSE’ QUESTIONED.

EMMA SOAMES

SAGA

PRESS RELEASE

April 18, 2011.

WAITING FOR GOD – AND ANDREW LANSLEY, TOO; HEALTH BILL ‘PAUSE’ QUESTIONED.

Prime Minister David Cameron says that the Government is taking advantage of the pause to consider “real changes” to the Health and Social Care Bill, but over-50s organisation Saga says he needs look no further than recent attitudinal research that makes it crystal clear as to what is required.

“Older people relying on the NHS are waiting for both God and Andrew Lansley while this ‘pause’ is going on; unfortunately only one is certain,” said Emma Soames, Editor-at-Large of Saga Magazine.  

“We surveyed 12,939 over-50s, and it’s clear that over-50s support radical reforms of the NHS.

“More than half (59%) of the twelve-thousand-plus over-50s surveyed would be happier if GPs would, in future, have more control over their long-term treatment and healthcare requirements.  This figure increases to 66% among the over-70s, who were most supportive of the changes.  

"A third (33%) of respondents to the Saga Populus poll thought that GPs would do better at finding them the best NHS treatment than the existing Primary Care Trusts (PCTs), and Strategic Health Authorities (SHAs).  

"While listening is good, and taking time to carefully consider such radical change is sensible, the government  shouldn't permit vested interests to derail the reforms, which aim to put patients and GPs at the heart of the new NHS.

"Older people have great faith in their GPs' commitment and ability to get the best possible health outcomes for them from the NHS. This principle should not be lost during this pause for further consultation,” said Emma Soames.  

"There is obviously room for a broader role for health professionals other than just GPs. Integration of medical and social care is very important for future success."

Ends

Further information:

Iain Macauley

07788 978800

im@pressrelations.co.uk

www.saga.co.uk

SAGA: WHO CARES MOST FOR OLDIES - OVER-50S OR UNDER-21S?

EMMA SOAMES

SAGA

PRESS RELEASE

April 18, 2011.

WHO CARES MOST FOR OLDIES – OVER-50S OR UNDER-21S?

A confusing picture has emerged over who cares more for the older generations – over-50s or under-21s.

The confusion arises from Aviva’s latest Real Retirement Report which states under-21s would put more cash into caring for elderly relatives – if they could afford it – but over-50s organisation Saga says that most familial carers are women over 50 who will find a way of paying.

“It’s a little bit apples and bananas, but while Aviva says under-21s would give up a greater proportion of their income to finance their older relatives, our research says something very different,” said Emma Soames, Editor-at-Large of Saga Magazine.  

"The Aviva report suggests that older people are happy to pass off the burden of supporting their elderly relatives, and that the young are the real philanthropic generation.  

“But, in stark contrast, our experience shows that most familial carers are women over the age of 50.  So whilst they are realistic about not being able to support their elderly relatives financially, they dig deep on both their physical and emotional reserves to provide the one-to-one care the most vulnerable in our society really need.

“The report, however, does highlight the potential for families to 'club' together to save for future care needs for the family as a whole, a point that Saga raised in its submission of evidence to the Dilnot Commission on Care Funding.

“This makes it clear that clubbing together, or wider incentives to encourage saving for care, should be a key strand in any recommendations arising from Dilnot.”

  
Ends

Further information:

Iain Macauley

07788 978800

im@pressrelations.co.uk

www.saga.co.uk

RE-OPENING OF CHEQUE ABOLITION INQUIRY IS PRICELESS, SAYS SAGA.

DR ROS ALTMANN

DIRECTOR-GENERAL, SAGA

SAGA SOUNDBITE

April 14, 2011.

RE-OPENING OF CHEQUE ABOLITION INQUIRY IS PRICELESS, SAYS SAGA.

Dr Ros Altmann, Director-General of Saga, commenting on the Treasury Select Committee’s decision to re-open its inquiry into the abolition of cheques, said:

"We warmly welcome the decision by the Treasury Select Committee to reopen its inquiry into the abolition of cheques.  This will be very popular with older people, many of whom have written to us expressing their concerns that they will not be able to manage without cheques. 

“Many of the over-50s find the convenience of writing cheques is very important to them for managing and organising their finances and keeping track of their dwindling pensions and savings income.

“Our recent survey of 13,000 over-50s found that two thirds of respondents (67%) fundamentally disagreed with the decision to withdraw cheques, and one in ten believed that they would not be able to pay some bills if cheques were withdrawn. 

“The most vulnerable of older people will often have no internet access and, if they are hard of hearing, may not be able to manage using telephone services either.  Therefore this decision to reopen the inquiry is a victory for common sense and the voice of older consumers."

Ends

Further information:

Iain Macauley

im@pressrelations.co.uk

07788 978800

www.saga.co.uk

SAGA PUBLISHES GUIDES TO WORKING LIFE AFTER THE DEFAULT RETIREMENT AGE (DRA) OFFICIALLY ENDS

DR ROS ALTMANN

DIRECTOR-GENERAL, SAGA

PRESS RELEASE

April 11, 2011.

SAGA PUBLISHES GUIDES TO WORKING LIFE AFTER THE DEFAULT RETIREMENT AGE (DRA) OFFICIALLY ENDS – ONE FOR EMPLOYERS, ONE FOR EMPLOYEES.

Video

To download a copy of the Rethinking Retirement guide for Employees please click here.

To download a copy of the Rethinking Retirement guide for Employers please click here.

The now defunct default retirement age has for generations signalled a dead end for older people – but now the challenge is for employers and wannabe-longer-workers is tackling the new lease of life leant by the new rules.

One of the country’s biggest and most experienced over-50s lifestyle groups, Saga, has more appreciation than most about what faces both employees and employers, and has produced online guides aimed at helping both groups.

“It’s not just a moral responsibility to let people work as long as they want, it’s now also a legal responsibility – but both employers and employees may well find the first steps into the unknown to be a bit daunting – so we’ve teamed up with The Age and Employment Network and brought to bear our collective experience to do what we can to help make this an easier cultural transition,” said Dr Ros Altmann, Director-General of Saga.

“The end of the default retirement age (DRA) has arrived – and from now on, employers can no longer sack workers just for being 65. At a time when people are living longer and the country faces unprecedented economic challenges, this is only the first step towards rethinking retirement. The UK must nurture a ‘personalised retirement’ culture if the country is to cater for its ageing population,” said Dr Ros Altmann.

“Many people want to work beyond retirement age, saying it keeps their mind alert and that they want to ensure continued income in later life.

“To make sure we do this to the benefit of UK workers, we need to alter our approach and mindset to retirement. This culture change means that the Government must encourage employers to make retirement a process, rather than an event.”

Saga has launched two guides outlining what employers and employees need to think about in this new workplace world.

The guides coincide with the end of the DRA, a move that Saga has warmly welcomed, knowing that many older workers would prefer to continue working than be forced to retire at an arbitrary age.

Dr Ros Altmann said: “We are delighted that the Government abolished the default retirement age. It should have been done years ago. We have been very concerned to see recent cases of employers outrageously forcing their workers in to retirement before the new regime sets in – this is a sheer disgrace.

“For both employers and employees wondering what opportunities and challenges will arise from now on, we hope our Saga Guides to Rethinking Retirement will prove very useful reading.

“We encourage any workers who have been forced to retire from their jobs to look at our guides and to consider their options. There are many alternatives for part time and flexible work open to people over 65 and we encourage people not to give up.”

Ends

Further information:

Iain Macauley

im@pressrelations.co.uk

07788 978800

www.saga.co.uk

OVER-50S ARE GRUMPY, UNFRIENDLY AND “PAST IT”? NOT SO, SAY THE WHIPPERSNAPPERS.

DR ROS ALTMANN

DIRECTOR-GENERAL, SAGA

PRESS RELEASE

April 10, 2011.

OVER-50S ARE GRUMPY, UNFRIENDLY AND “PAST IT”? NOT SO, SAY THE WHIPPERSNAPPERS.

Dr Ros Altmann video

Oldies’ perceptions that younger people pigeonhole them as grumpy, unfriendly and “past it” are misplaced, according to independent research commissioned by over-50s lifestyle group Saga.

The research compares the perceptions 18-24s have of over-50s with what older people believe younger people think.

“The overall message is that perhaps crossing the boundary to 50 is nowhere near as life-changing as myth, Grumpy Old Men and Victor Meldrew would have it,” said Dr Ros Altmann, Director-General of Saga.

“Around 67% of over-50s believe 18-24s perceive them as ‘past it’, but the reality is that just 18% of 18-24s actually have that perception. And while only 11% of over-50s think younger people perceive them as friendly, the reality is that around 29% of 18-24s do actually think older people are indeed friendly.

“We’ve decided that all this is becoming such an issue we’re putting up a £10,000 reward for the video that best dispels the ’50-is-old’ myth.

“There are more myths to be shattered too: just 17% of over-50s think 18-24s consider them knowledgeable; however, the truth is that 42% of 18-24s perceive oldies as being great fonts of knowledge.

“Perhaps understandably, 18-24s are largely unenthusiastic about turning 50, with 39% of younger adults saying 50 seems old, but only 8% of over-50s agreeing once they reach and pass that milestone. 60% of over-50s consider 50 to be ‘just another birthday’, while only 16% of younger people dismiss it in the same way.”

The video competition is open to anybody over the age of 16 who lives or studies in the UK.  For example, you may be younger than 50:  As you think about the future, what do you hope life will be like when you turn 50?  What are you looking forward to?  You may be older than 50:  in a similar way, put yourself in the shoes of someone around 25 today, and think about their world when they will be 50.  

Video submissions: Full details on http://www.saga.co.uk/being50

The research was conducted by YouGov for Saga, sampling 1,148 UK adults on February 22 and 23, 2011.

Ends

Further information:

Iain Macauley

im@pressrelations.co.uk

07788 978800

www.saga.co.uk

HUTTON RECOMMENDATIONS: PUBLIC SECTOR PENSIONS REMAIN AMAZINGLY GENEROUS, SAYS SAGA.

DR ROS ALTMANN

DIRECTOR-GENERAL, SAGA

PRESS RELEASE

March 10, 2011.

PUBLIC SECTOR PENSIONS REMAIN AMAZINGLY GENEROUS.
PUBLIC WORKERS SEEM UNAWARE OF JUST HOW GENEROUS THEY ARE.

Lord Hutton's recommendations on public sector pensions have led to calls for industrial action by public sector unions, but the reality is that his proposals will still leave them with hugely generous pensions that most private sector workers could never hope to achieve, says Dr Ros Altmann, pensions expert and Director-General of over-50s group, Saga.

Dr Altmann makes a number of observations on the Hutton recommendations:

1.  Public sector workers will still retain really generous pensions.

2.  Even a £4,000 a year public sector pension is worth more than £100,000, and most private sector workers, especially those on low pay, could never hope to save that sum of money during their working lives. Public sector workers pay relatively little to achieve this huge benefit.

3.  Pay in the public sector is no longer lower than in the private sector, so workers' pensions are no longer reflecting lower pay as was the case in the past.

4.  The new proposals will be fairer for women and low paid workers, because they benefit most from a career average scheme rather than final salary.

Dr Altmann said: “There are several good points in amongst Lord Hutton's recommendations.

“An independent oversight of the costs of public sector pensions to protect future taxpayers and help provide transparency - these changes are long overdue.

A proper cost cap on employer (ie. taxpayer contributions) – again, this is essential if we are to make pensions sustainable because unexpected future changes need to be accommodated more flexibly than current systems allow.

“Linking pension age to state pension age is very welcome because it reduces the unfairness between public and private sector workers - and I would expect private sector pension schemes will look to follow this example too

“The new proposals will share the cost more fairly across generations and ensure workers are paying more if the costs of their pensions is rising.”

Dr Altmann has also explained why public sector pensions remain generous even after the Hutton recommendations.

“All workers in the current scheme will have their accrued pension benefits linked to their final salary when they retire, not career average and not their actual salary when the scheme changes, which is far more generous to them because they will keep the final salary link even for the future. The new career average accruals will only start from when the new scheme starts.  

“Anyone close to retirement or in their 50s will be pretty much unaffected.

“Public sector pensions will still be 100% inflation-linked - even if it is to a slightly lower measure of inflation, the protection is still vastly better than in the private sector.

“Meanwhile, anyone who has left the public sector will still have their pension revalued each year by average earnings - not prices - up to their retirement, so their pension will be higher than for equivalent private sector workers,” said Dr Altmann.

Ends

Further information:

Iain Macauley

im@pressrelations.co.uk

07788 978800

www.saga.co.uk

WOMEN’S STATE PENSION IMPLICATIONS EXPLAINED

DR ROS ALTMANN

DIRECTOR-GENERAL, SAGA

PRESS RELEASE

February 1, 2011.

WOMEN’S STATE PENSION IMPLICATIONS EXPLAINED.

Dr Ros Altmann, a leading economist and Director-General of over-50s organisation Saga, says that the UK’s 500,000 older women are on a collision course with Government pensions policymakers.

“Handbags at dawn will be as nothing once the penny drops with hundreds of thousands of UK women and it hits home that the retirement for which they have planned for decades in some cases is going to be a very different one – not just delayed, but also under-funded. And worse still, for the vast majority it is far too late to make contingencies,” said Dr Altmann. (Video 1)

“Across the country I’m hearing from women who are suffering that sudden sickening realisation that their destiny in retirement is not in their own hands – this is not about luxury retirement villas, this is about affording the basics. And they can do absolutely nothing about it.

“Proposals to increase the state pension age for women to 66 by 2020 seem to have unfair and disproportionate consequences for a significant number of women already past their mid-50s who have no time to make up for the lost pension income they have been expecting.  (Video 2)

“Around 500,000 women already over 55 will see their pension age rising by more than one year – and that is on top of increases of three or four years that they were required to accept in the 1995 Pensions Act.  They were assured by the new Government last year, in its Coalition Agreement, that women's pension age would not rise again before 2020 - but those assurances have been broken.

“As part of the measures to cut Government spending, the coalition announced that women's state pension age – which is already being increased from 60 - will start to rise even faster to reach age 66 by 2020.

“This means that between 2010 and 2020, women's pension age will increase by six years, while men's pension age will be raised by just one year. These new extra increases for women start from 2016, but for men the increase is just one year and only starts from 2018.

“These changes were not mentioned before the election and, indeed, the Coalition Agreement stated that women's state pension age would not rise further before 2020.

“Hundreds of thousands of women will be affected adversely.  These women were told, some years ago, that their pension age would increase from 60 to around 63 or 64. They accepted this change without fuss and set about planning their finances in anticipation of receiving their state pensions later than previously expected. (Video 3)

“But the Government has suddenly moved the goalposts on them. From 2016 onwards, women’s pension age is being increased again. For some unlucky women, by up to two more years.

“By suddenly making them wait so much longer, they face a shortfall of more than £10,000 and they simply will not have time to make appropriate financial arrangements to offset those losses. (Video 4)

“The Government announced these plans unexpectedly. Its paper explaining this decision concedes that women will not have time to plan, but still asserts that the change is not disproportionate.

“Women are already at a pension disadvantage relative to men. This generation of women earned less during their working lives. They were often barred from joining private pension schemes when they started working. Many had to interrupt their careers for child-raising, giving them less chance to build up a pension outside the state system and receive less state pension as well. (Video 5)

“Others have already made careful plans for their retirement, some are seriously ill.

“These women have often already retired to look after older or younger relatives and most are not earning enough currently to be able to save the thousands of pounds necessary to replace the lost state pension. The decision is clearly discriminatory.

“Women accept the need to equalise pension ages, but the timetable proposed is unfair. The outrage is clearly demonstrated in the countless letters that we have received from our members.

“Saga’s survey of more than 12,000 men and women aged over 50 reveals that 74% said that even though the Government needs to raise money, the change in women's pension age as proposed is not the right way to proceed.

“The Government urges people to plan carefully for their retirement. Yet women who did exactly that have had the rug pulled from under them by the Government itself. Saga is calling for the Government to reconsider its plans.” (Video 6)

What could the Government do instead? – favoured option:

Delay the increase in women's pension age until 2020. Between 2010 and 2020, women's pension age is already set to increase from 60 to 65. By 2020, the pension age for men and women will be equalised at 65. Waiting until 2020 before starting to increase women's pension age still further will allow men’s and women's pension ages to rise in tandem to 66, perhaps by the end of 2020. This would allow more time to prepare, affect fewer people and not interfere with the existing timetable of pension age changes.

Further options:

At the very least, surely the Government must limit rises in women's pension age to ensure nobody suffers a rise of more than one year in pension age within ten years of their expected pension date.

In order to protect the most vulnerable women (and men) the Government could also leave Pension Credit eligibility at the current state pension age timetable, rather than increasing the age at which pension credit begins in line with rising women's state pension ages. This would at least ensure that the poorest will not be left to rely on just unemployment benefit.

In addition, the Government could consider exemptions for seriously-ill women (and men) and allow them to retain the currently planned pension ages until 2020.

It is also essential that the Government makes it clear to women exactly what is being proposed, as many still are unaware of the plans.  Ros Altmann said: “The Government itself is still misleading women with its official website. (Video)

“Despite the announcement of these reforms the changes have not been accurately reflected on the Government's own state pension age calculator on the Directgov website. (http://pensions.direct.gov.uk/en/state-pension-age-calculator/home.asp),” said Ros Altmann.

“A small caveat under the calculator that signposts further information on the ‘proposed’ changes is simply not enough. The calculator should either be withdrawn or amended to reflect the new proposed dates – immediately.”

Ends

Further information:

Iain Macauley

im@pressrelations.co.uk

07788 978800

www.saga.co.uk