Retirement is not good for you
Posted in 'Personal Finance' by Barry Stamp
17 May 2013
A new report issued by the educational charity, the Institute for Economic Affairs, claims that retirement can have a detrimental impact on both physical and mental health.
The report, entitled Work Longer, Live Healthier: The relationship between economic activity, health and government policy reveals that
- Retirement decreases the likelihood of being in ‘very good’ or ‘excellent’ self-assessed health by about 40%
- Retirement increases the probability of suffering from clinical depression by about 40%
- Retirement increases the probability of having at least one diagnosed physical condition by about 60%
- Retirement increases the probability of taking a drug for such a condition by about 60%
What’s more, the time spent in retirement turns out to be very life changing in more ways than one. According to the IEA report:
- It decreases the likelihood of being in ‘very good’ or ‘excellent’ self-assessed health by between 10% and 30%
- It increases the probability of suffering from clinical depression by 17%
- It increases the probability of having at least one diagnosed physical condition by 22%
- It increases the probability of taking a drug for such a condition by 19%
Philip Booth of the Institute of Economic Affairs says, “Over several decades, governments have failed to deal with the ‘demographic time bomb’. There is now general agreement that state pension ages should be raised. The government should take firmer action here and also deregulate labour markets. Working longer will not only be an economic necessity, it also helps people to live healthier lives.”
Edward Datnow of the Age Endeavour Fellowship says, "In highlighting the positive link between work and health in old age this research is a wake-up call for the UK's extensive and well-funded retirement lobbies. More emphasis needs to be given to ways of enabling a work-life balance beyond today's normal retirement age with legislative discouragements to extending working life being replaced with incentives. There should be no 'normal' retirement age in future. More employers need to consider how they will capitalise on Britain's untapped grey potential and those seeking to retire should think very hard about whether it is their best option."
The IEA is recommending that the government should pursue policies that remove barriers to working longer, as current demographic changes are putting unnecessary pressures on both state pensions and health care costs.
Barry Stamp is a co-founder of checkmyfile and is a Chartered Banker and a Fellow of the Institute of Credit Management. He can be contacted at email@example.com.
Barry is a Chartered Banker and a Fellow of the Institute of Credit Management. He has a degree in Statistics and Business Economics from the Open University. Barry writes mostly on news from the worlds of banking and mortgages.
Barry is a co-founder of checkmyfile.
Standard Life policyholders owed an average of £3,000 need to step forward to stake their claim as time is quickly running out.
Those who have a share in the £113m have until 9th July 2016 to come forward after which point the money will be lost. In 2006 Standard Life demutualised and their 2.4m policyholders were left with an entitlement to shares or cash following the companies listing on the stock market. With less than two years to go until the deadline, 73,000 individuals have yet to claim what is rightfully theirs, including one person who is owed an estimated £120,000.
If you think this may apply to you the criteria to bear in mind is that you must have held a Standard Life with-profits policy that started before March .....
In recent years there have been a number of changes to how people can manage their pensions and the Treasury is now expected to add a little more freedom with regards to how savers can take lump sum payments from their pension.
Currently people are able to take a 25% tax-free lump sum from their pension from the age of 55. In the changes it is expected that savers will be able to make multiple withdrawals and that 25% of each payment will be tax-free.
Chancellor George Osborne states, “People who have worked hard and saved all their lives should be free to choose what they do with their money, and that freedom is central to our long-term economic plan”.
The chancellor wants people to be able to access as much of their .....
Research that reveals that as many as 60% of people aged 18-24 would take a short break in Europe without travel insurance
Page: 1 of 34