OVER-50S POUND THE PAVEMENT TO MAKE THE MOST OF THEIR “BONUS YEARS”.

SAGA

PRESS RELEASE

September 30, 2011.

OVER-50S POUND THE PAVEMENT TO MAKE THE MOST OF THEIR “BONUS YEARS”.

A fast-growing club of over-50s are chasing improved fitness levels in later life.

Over-50s organisation Saga commissioned independently-conducted research of 10,500 people on the run up to Older People’s Day, October 1, 2011 – the theme of which is getting active and staying active - to establish just how fit older people are, and discovered that people in their mid-late 60s put in more hours of exercise than people in their early 50s.

“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.

The Saga study revealed that the vast majority of older people cite health improvement or active-life extension as the main reason for pavement pounding and Wii Fit workouts.

But while 38% of 50-somethings flex their muscles for between two and five hours a week, this is beaten by the 44% of 65 to 69-year-olds who exercise for up to five hours.  In fact, the older groups are exercising even more than their younger peers. More than 40% 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.

“By their mid-60s, older people realise they have a good few decades left in them – and being fit means they can make the most of it, so they’re increasing their exercise levels,” said Dr Altmann.

“We interact with millions of older people every day, so we’re perfectly positioned to give guidance: we employ and retain health and fitness experts whose sole responsibility in life is to do what they can to ensure the 21 million over-50s in the country extend their lives and lifestyle as long as possible, and our website’s health and wellbeing sections are getting more hits than ever. We’re consequently seeing a boom in over-50s who are increasing their exercise rates.

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

Meanwhile, five times as many over-50s men compared to women say they’ve embarked on their exercise regime to improve their sex life. And there are some notable regional differences with, for example, five times as many older people in Yorkshire and Humberside compared to neighbouring North East using exercise to improve their physical relationship.

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.

The 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.

Full survey stats available on request.

Ends

For further information:

Saga Press Office
01303 771529.

www.saga.co.uk

Iain Macauley
im@pressrelations.co.uk
07788 978800

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

SAGA LAUNCHES FREE OVER-50s iPHONE HEALTH APP.

SAGA SERVICES LTD

PRESS RELEASE

September 20, 2011.

SAGA LAUNCHES FREE OVER-50s iPHONE HEALTH APP.

Over-50s lifestyle organisation Saga has launched its first health-related app for iPhones as Health Secretary Andrew Lansley calls for new ideas for health related applications to help people make informed choices.

The new Saga Health App is available to download free from Apple’s iTunes App Store. It contains comprehensive information on medical conditions and health topics, as well as a database of private and NHS hospitals and contact details for a wide range of health specialists.

“Around 15-20% of over-50s use a smartphone, and older people do on occasion experience creaks and conditions that are more prevalent to their age bracket. The app is not intended to be a conclusive self-diagnosis tool, but does contain easy-to-use fact sheets on 180 medical conditions and health topics, providing information on things like symptoms, treatments and support organisations,” said Roger Ramsden, Chief Executive of Saga Services Ltd.

“It is designed to be useful to both Saga Private Medical Insurance policyholders and non-policyholders alike and provides access to free health information 24 hours a day.

“There is a database of more than 450 private and NHS hospitals that can be used by our policyholders and over 20,000 recognised specialists - for example cardiologists, physiotherapists and chiropractors - that can be searched for by specialty.

“Using the device’s in-built GPS, the app will even provide directions of how to find them from the iPhone user’s location.

“If the user is one of our existing PMI (private medical insurance) policyholders, they can even securely start the claims process on the new app, and if they aren’t, then we’ve made it easy for them to contact our team for a quotation.

“Of course, some wily older people might also see an opportunity to gain benefit on other fronts – many of the fact sheets also contain information that might just prove to be advantageous in pub quiz nights where the topic or round turns to medical matters…”

To download the FREE Health app from Saga visit the app store and search for Saga Health, or click here.

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

CHEQUE SCRAPPING PLAN BOUNCED – A CREDIT TO COMMON SENSE, SAYS SAGA.

DR ROS ALTMANN
DIRECTOR-GENERAL, SAGA
PRESS RELEASE

 July 13, 2011.

CHEQUE SCRAPPING PLAN BOUNCED – A CREDIT TO COMMON SENSE, SAYS SAGA.

Commenting on news that The Payments Council will not be scrapping cheque books, Dr Ros Altmann, Director-General of over-50s group Saga, said:

"Money in the modern era is easy-come-easy-go; the ceremony of writing a cheque gives importance to a transaction, and reminds people of an era when money was a great deal more scarce, and a great deal more valued.

"This is a fantastic victory for common sense - Saga has daily contact with millions of older people, and we have led or backed every effort to ensure the powers that be know that the cheque is well short of being past it.

“There are millions of older people who have spent far more of their lives in the paper age - using cheques - than in the electronic, paperless, age. Our independent Populus research showed 67% of older people disagreed with the banks’ plans to phase out cheques. Eight per cent – around two million over-50s - said they would not manage at all to pay some of their bills if they did not have cheques.

"As well as being a practical system to which they have become accustomed, older people also feel that cheques give some comfort that there's proof their money is moving around under their control. And if, for instance, they want to send their grandchildren a birthday gift, donate some money to a small charity or pay their plumber, they will be able to continue with the convenience of cheques.

“They are bombarded with warnings about guarding their card details – and not all older people have credit or debit cards - and those warnings have, in their minds, simply underpinned their concerns about handing over card details, and steeled their determination to keep the cheque alive and kicking.

“Abolishing cheques would have made things easier for the banks, but would have made life much harder for their customers. 

 “I’m delighted that the Treasury Select Committee has flexed its muscles on this one and stood up for customers against the strength of the banking sector – it is encouraging to see the banks have backed down and seen common sense too.”

 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

SOUTHERN CROSS CLOSURE: KEEP EVERYONE INFORMED - AND RING-FENCE CARE SPEND, SAGA TELLS GOVERNMENT.

DR ROS ALTMANN
DIRECTOR-GENERAL, SAGA
PRESS RELEASE

July 11, 2011.

SOUTHERN CROSS CLOSURE: KEEP EVERYONE INFORMED - AND RING-FENCE CARE SPEND, SAGA TELLS GOVERNMENT.

Dr Ros Altmann, Director-General of over-50s group Saga, says the Southern Cross care homes closure maintains the pressure on Government to ring-fence spending on care provision, to keep residents and their families well informed of developments in a bid to drive certainty and reassurance – and to drive plans to enable people to benefit from receiving care in their own homes.

“This has become a fast-changing news story, so communication with those most affected – residents and their families – must be clear, consistent and frequent to avoid the uncertainty that plagued those affected in the early phases of the demise of Southern Cross,” said Dr Altmann.

“In June everybody involved resolved to deliver a decisive way forward for Southern Cross and its residents by the autumn of this year. There was a degree of certainty in that – although not enough, of course – and while we are pleased there is now some progress towards resolution, of paramount importance is that residents, their families and the staff need reassurance about the future level of care provided in the care homes being transferred to new owners or operators.

“The fundamental problem remains that Government has historically not put enough money into care; we say that a priority must be to enable more people to receive care in their own home. But local authority budgets are being cut, and they are not willing to pay enough to cover the costs of providing care of a quality that ensures dignity and decency to care home residents – or those wanting to stay in their own home - so in the case of care homes, individuals or families end up subsidising state-funded residents which is obviously not a sustainable situation.

“The £2billion that Government has supposedly given to local authorities for additional care funding is not ring-fenced for care, so it is not being spent on care - and councils are still cutting care budgets, not increasing them despite the growing demand and need for care. This is a problem across the whole care sector and needs to be addressed urgently.

“We have been looking at just one example, Worcestershire, where the local authority is willing to pay just £70 a day to cover full board, meals, accommodation and staff to look after residents. It doesn’t take a financial expert to appreciate this is simply not enough to cover costs, particularly as inflation has reached such high levels.

“The Southern Cross situation stresses the importance of driving through Andrew Dilnot’s recommendations – whether in current form or modified – which will help capacity and funding alleviate pressures throughout care provision.”

Ends

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

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

Ends

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.

Report dictating what we should drink at 65 is nothing short of ridiculous, says Saga’s Emma Soames

EMMA SOAMES

EDITOR-AT-LARGE

SAGA MAGAZINE

PRESS RELEASE

June 22, 2011.

Report dictating what we should drink at 65 is nothing short of ridiculous, says Saga’s Emma Soames

Responding to the report by the Royal College of Psychiatrists relating to over-65s and drinking,, Emma Soames, editor- at- large for Saga Magazine, said:

“This will absolutely infuriate older people.  Eating and drinking is one of the last great pleasures for the elderly.  Raising awareness of the issue to the very few  who drink heavily is one thing, but dictating half a glass of white wine and half a glass of beer, to people who have drunk safely all their lives is nothing short of ridiculous. 

“I don’t think anybody fell over and seriously injured themselves through drinking just a couple of glasses of wine.

“For older people who live on their own, looking forward to a drink in the evening or a trip to the pub is one of their few pleasures and chances to socialise.  

“There are thousands of older people who enjoy a drink, probably more than the new suggested limits, who surely cannot be described as heavy or antisocial drinkers.”


Ends.

Lisa Harris
Saga Group Communications
Saga Group Ltd
01303 776504
07515 496321

THE MONSTER OVER THE HILL – THE CARE CRISIS LOOMS. DILNOT TO LEAD JUNE 7 DEBATE.

DR ROS ALTMANN
DIRECTOR-GENERAL, SAGA
PRESS RELEASE

June 6, 2011

THE MONSTER OVER THE HILL – THE CARE CRISIS LOOMS.

DILNOT TO LEAD SAGA'S SEMINAR IN SEARCH FOR SOLUTIONS.

Some of the most informed, visionary and influential people in social care will gather in London on Tuesday, June 7, 2011, in a bid to tackle the looming UK care crisis - the monster over the hill.

Andrew Dilnot, chairman of the Government’s Commission into Care Funding, will lead the debate at the Saga Care Crisis Seminar, which will be chaired by Dr Ros Altmann, Director-General of over-50s organisation Saga, and attended by a selection of the most senior care sector influencers.

“History is littered with ‘told-you-so’s’ – those of us who have a frontline appreciation of care issues are screaming that there’s a monster over the hill, but the policymakers either don’t see it, or are so dumbstruck by the magnitude of the threat that they’re frozen to the spot, and unable to respond or react,” said Dr Altmann.

“The care issue is invisible to many, but monstrous to those with direct care sector contact. The combined expertise and brainpower around that table on Tuesday knows that a care catastrophe is fast – and relentlessly – approaching.

“It is essential that we move on with reform of care funding – quickly and decisively - before we are overwhelmed. If we believed the pensions crisis was crippling, the care crisis has the potential to be far, far worse.  If someone does not have enough pension, they may be able to wait a bit.  But once someone needs critical care, they cannot wait at all.

“Very few people have earmarked any money for care needs. They just hope someone will look after them if the need arises. At least with pensions most people have done some saving, but, when it comes to care, there is no private provision - people just have to find the money at the time, and this can mean losing all their assets.

“The seminar will generate some definitive and do-able solutions, because, frankly, in the past, policymakers have come up with very little, have disguised petty political differences as insurmountable operational and organisational issues, and simply failed to make progress. Time is now running out in more ways than one.

“The crisis is creeping up on us. We must recognise the potential for the issue to overwhelm the system before it’s too late.”

Ends

Further information:

Dr. Ros Altmann
Director-General, Saga
ros.altmann@saga.co.uk
07545 504513
Twitter @SagaRosAltmann

Iain Macauley
im@pressrelations.co.uk
07788 978800
Twitter @Press_Relations

LANDMARK REPORT REVEALS GRIM REALITIES OF LIFE FOR BRITAIN’S OVER 50s

DR ROS ALTMANN

DIRECTOR-GENERAL, SAGA

SAGA QUARTERLY REPORT

PRESS RELEASE

February 15, 2011.

LANDMARK REPORT REVEALS GRIM REALITIES OF LIFE FOR BRITAIN’S OVER 50s

Deep concerns about cost of living, income and unemployment hit quality of life

Policymakers warned as pre-retirees and lowest socio-economic groups suffer most
Video interviews with Dr Ros Altmann. http://www.youtube.com/watch?v=x2uaU2Qyjk4

The Saga Quarterly Report, a comprehensive analysis of the lives of Britain's 21 million over 50s, has uncovered a bleak picture.  The Report, published today, is the first authoritative study to combine serious economic analysis with evidence on well-being, happiness, worries and living standards of over 50s.  It makes grim reading. 

The quality of life for the over 50s is worsening as they are suffering falling income, rising inflation and higher unemployment.  They report being increasingly worried about the cost of living and are cutting back on life's pleasures, such as eating out and holidays.  Hardest hit are 50-59 year olds, and the lower socioeconomic groups across all over 50 age bands are suffering disproportionately. 

"People sometimes paint the older generation as ‘the lucky ones’ with fewer problems than others. The evidence does not support this view", says Dr. Ros Altmann, Director-General of Saga, the over 50s group.

"Some are fine, but the majority are currently struggling and the worst affected are just short of retirement.  Their pensions will not deliver the income they were expecting, their savings income has evaporated and more are losing their jobs.  Once out of work, they find it hard to get back in.  In short, their lives may never recover, but their plight has so far been ignored by policymakers."

The Saga Quarterly Report is the first to combine hard economic data with survey evidence on well-being.  This echoes the Government's upcoming initiative to measure national well-being, due to start in April 2011.

Saga commissioned respected independent economists at the Centre for Economics and Business Research (Cebr) to analyse official economic data for the over 50s, showing trends in their income, unemployment and cost of living.  Saga also commissioned Populus to conduct a nationwide survey, asking more than 10,000 over 50s about developments in their happiness, health, standard of living and leisure spending as well as reporting their increasing worries. Cebr analysed these Survey results to compile the Saga Quality of Life Index (QOLI) for the over 50s, which is an innovative indicator of well-being for this important group.  Combined with the economic data, the Saga Quarterly Report provides a comprehensive picture of life for Britain's over 50s.  It will be updated every three months.

"The Government itself wants to move beyond just looking at economic factors when assessing the nation's progress.  Saga agrees and has taken the initiative to do this for the over 50s," stated Ros Altmann.

Key findings of the Saga Quarterly Report

• Over-50s quality of life has worsened over the past year
• 50-59 year olds and the lowest socio-economic groups across all over 50 age bands are having the toughest time
• Inflation is higher for 50-64 year-olds than for the rest of the population
• Unemployment for the over 50s is 69 per cent higher than it was pre-recession, compared with a 55 per cent rise across all age groups
• Long term unemployment has hit the over-50s hardest, with 43 per cent on the dole for more than a year (compared to 27 per cent of 18-24 year-olds)
• Rising cost of living is biggest worry for over-50s (63% more concerned than a year ago)
• Falling income from savings worries over half (54%) of over 50s
• Nearly half the over-50s have cut down on eating out to save money.

Charles Davis, Cebr economist said: “This report should prove a highly important piece of regular quarterly research.  As the UK’s population of people over 50 continues to grow it is imperative that their concerns and challenges are tracked and understood.

Ros Altmann added, "As the Pensions Bill has its second reading in Parliament, policymakers need to recognise these realities.  The unemployment findings are particularly worrying.  If the over 50s are increasingly locked out of the labour market, measures to increase the state pension age too rapidly could do more harm than good.”

“There are 21 million over-50s in Britain, and if they’re cutting back on spending it could have massive implications for the economy.”

ENDS

NOTES FOR EDITORS

1.  The Saga Quarterly Report combines hard factual statistical data from official sources (such as Office for National Statistics and Family Expenditure Survey) with Saga’s own exclusive nationwide Populus Survey of more than 10,000 people aged over 50.

In identifying some of the key drivers that impact the daily lives of this age group and by tracking the quality of their lives, Saga hopes the Quarterly Report and its Quality of Life and Price Indices will improve the understanding of the lives of the over 50s, challenge the way society perceives age and ensure that the concerns and interests of the over 50s are on the agendas of politicians, decision-makers and the media.

2.  Each report will include The Saga Quality of Life Index which measures perceptions of happiness, standards of living and health and has been modelled by Cebr from Saga Populus Survey data to form an Index which can be tracked over time.

Saga Quality of Life Index - January, 2011

3.  The Report also includes the Saga Price Indices, which are bespoke measures of price inflation for the over 50s, showing how inflation is affecting the cohorts age 50-64, 65-74 and the over 75.  These indices have been compiled for Saga by the Cebr, using statistical data from the Family Expenditure Survey to re-weight the official basket of the consumer prices index to represent the spending patterns of each age group. 

4.  David Cameron announced last November that he wanted a better measure of how the country is doing than gross domestic product (GDP) or other economic indicators.  He said ''it is high time we admitted that taken on its own, GDP is an incomplete way of measuring a country's progress''.  He said it should be replaced by charting national well-being, adding that 'the country would be better off if we thought about well-being as well as economic growth''.  A new measure of national well-being ''could give us a general picture of whether life is improving' and eventually 'lead to government policy that is more focused not just on the bottom line but on all those things that make life worthwhile.''  From April 2011, the Office for National Statistics will start the ''National Well-being Project'' which will ask people to rate various measures of their own well-being and result in the first official 'happiness index' in 2012.  David Cameron, as well as other world leaders considering similar moves, are responding to calls by economists such as Joseph Stiglitz and Amartya Sen, who argued that countries should include more subjective indicators in measures of prosperity, and should move away from the standard economic measures.  Saga decided the over 50s could not afford to wait any longer, as the policy debate should be informed about their well-being now.  Our report shows that we were right.

5.  Saga has a number of case studies of people in their fifties who have been badly hit by rising cost of living, and/or falling savings income and/or long-term unemployment and are willing to explain how they feel left out by Government policy and hard hit by the economic backdrop.

The Saga Quality of Life Index

The Saga Quality of Life Index is comprised of three equally weighted sub-indices:

1. The Standard of Living Index – which is based on answers to the survey question: “Over the past year, how has your standard of living changed?”
2. The Happiness Index - which is based on answers to the survey question: “All things considered, since last year would you say you are much more/more/about as/less/ much less happy?”
3.  The Health Index - which is based on answers to the survey question: “Compared to this time last year, how is your health?”

Answers to the questions (which are multiple choice) are scored according to the following conventions:

A weighted average of the survey responses, based on these scores, yields each of the sub indices. A score of 100 would imply that every survey respondent has indicated much improved outcome for the sub index. A score of -100 would imply all respondents indicating a much worse outcome.

The Saga Quality of Life Index is the (equally weighted) average of the Standard of Living, Happiness and Health sub-indices. It too is limited to the range -100 to 100. A score of 100 would imply that every survey respondent has indicated much improved standard of living, happiness and health compared with 12 months ago. A score of -100 would indicate much worse outcomes, for each of these indicators, for each survey respondent.

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