Introduction
The advancements in the medical field have brought about changes in the health of the individuals which has increased their overall capability to work harder and to be independent for a long period of time (Ageing.ox.uk 2020). However, over the past few years, the state pension age has remained stagnant to 60s and according to Jones (2016), this may be too early for the different individuals and hence, an individual who is completely capable of working and earning for themselves may find themselves unemployed to a great extent. Hence, the report is primarily focused on analyzing the proposal of increasing the State Pension Age to 75 by the year 2035. The society has failed to grasp and respond to the different needs of the ageing workforce. Additionally, the working longer has a considerate potential to improve the health as well as the overall wellbeing of the individual and gives them an opportunity to increase their retirement savings and undertake the full functioning of the public services. Hence, the report will outline the different issues of the Ageing workforce in the United Kingdom and provide financial advice in consideration of the same. Hence, certain recommendations to improve the scenario and
Provide a self-dependent scenario for the ageing workforce will be provided accordingly.
Figure 1: The Pension age in UK
(Source: Ageing.ox.uk 2020).
Issues of the ageing workforce in the United Kingdom
Various individuals in the United Kingdom are living longer than before due to the achievement of the modern science as well as improved healthcare. Other individuals mention that the older people form a considerate proportion of the population and hence, their contribution to the society is much higher. The individuals are workers, volunteers, tax payers as well as the careers. However, according to Ageing.ox.uk (2020), the United Kingdom is not making most of the various opportunities which can be afforded by the ageing population. The individuals are forced out in the later life by the unwelcoming attitude at the workplace. Additionally, very few individuals do not have to access the training and are not being able to adapt to the changing labor market. The ageing model also challenges the United Kingdom`s model of the service provision and if there exists an older population, the demand for the public services increase but questions can be raised about the sustainability of the current models of the working health, pension and provision (Shipway et al. 2015). Additionally, the political issues in regard to the situation can be referred to be the fact that, the government does not have adequate policies at place in regards to the overall management and consideration which is generally required in the case of an aged population (Telegraph.co.uk 2020). The pensions are given to the employees up to a certain age limit however, the particular population is now fit enough to work for a longer time frame and hence, the pension policy is beginning to collapse.
The social issues which are being faced in consideration are that there are no adequate activities which can be applied and may be suitable for the ageing workforce and the options available to the different individuals are rather limited (Kanabar 2015). In line with this, the increasing ageing population has a negative influence on the economic status of the country whereby although this population has the ability to work and forms an integral part of the society, however, they are not contributing adequately. Hence, as the issues have propped up, the proposal of increasing the State Pension Age to 75 by the year 2035 seems appropriate (Jones 2016).
Advantages of employing people beyond the Current State Pension Age
- Experience: The primary advantage of employing the different individuals beyond the current state pension age can be understood to be the fact that it will help the enterprise in performing well as these individuals have prior experience in the field.
- Knowledge: The individuals have prior knowledge as well and concerning this, they will be able to contribute effectively to the overall goals of the enterprise.
- Good image: Hiring of these employees will thereby assist in ensuring that the firm can enjoy a good image in the eyes of the investors as it encourages inclusion.
Disadvantages of employing people beyond the Current State Pension Age
- Health issues: These individuals experience considerate health issues which may impact their work (Berry 2016).
- Age group difference: The aged individuals may not necessarily be able to gel with the existing employees due to the age difference.
- Working style: The working style of these individuals may not be as proactive as required and this may lead to a poor workplace culture and related conflicts.
Figure 2: The increasing ageing population
(Source: Ageuk.org.uk 2020)
Government initiatives taken
The government has taken several initiatives in this domain so as to ensure that the individuals who are retiring from the workplace are being able to utilize their time accordingly. Working for a longer time period tends to improve the health benefits and hence, the government has undertaken various plans so that these individuals are successfully being able to manage the operations accordingly and in association with this, they are being able to come up with policies with respect to Health care so that the age group can be managed (Telegraph.co.uk 2020). In association with this, the government has planned certain employment programs which would help the individuals to pass their time accordingly.
Fairness of raising State Pension Age over such a short period of time
Vincent, Patterson and Wale (2017), states that although the proposal to increase the State Pension Age by 2035 seems to be amicable, various experts and related critiques may feel that the time period is to short. However, to justify this, it can be essentially mentioned that this increasing fitness with age is a phenomenon which has been taking place since a long period of time and hence, the 15 years proposed time is rather applicable in consideration to the fact that it is time to bring about this change and ensure that the population is being allowed to work until a longer age (Foster 2018).
Possible alternatives to the proposal
These individuals can be involved in another scheme which shall ensure that the population is successfully being able to manage their finances well and are still being able to employ themselves in a manner such that they are able to remain healthy by working for a longer time frame and additionally are also being able allow a regular flow of income for themselves.
Factors beyond retirement planning that this issue might impact
The issue pertaining to extending the Pension Age Limit affects domains like Organizational structure and the Healthcare planning as well (Telegraph.co.uk 2020). As increasing this age limit will assist in ensuring that the enterprises will be required to manage the organizational culture accordingly to see to it that they are being able to gel well with the younger population. Additionally, are being able to ensure that, the workplace queries can be resolved accordingly. In consideration with this, the issues relating to Personal finance planning and the Healthcare planning will also be affected accordingly. Ageuk.org.uk (2020) states that, the healthcare planning is affected because the issues related to ageing may be altered and additionally, personal finances of the ageing group also have to be planned accordingly.
Figure 3: The increasing ageing population
(Source: Telegraph.co.uk 2020).
Importance or otherwise of personal financial planning in finding a solution
According to Shipway et al. (2015), the personal financial planning has a key role to play in finding a viable solution because it will assist in devising a strategy which shall be useful for the ageing population to ensure that they are being able to remain independent and that they are being able to come up with a strategy with the help of which, their overall livelihood and quality of life improves. Once the personal finances of the population are in place, they will be able to perform well and undertake initiatives to improve their lifestyle (Foster 2018).
Relevancy to individual`s personal finances
The State pension age limit needs to be increased accordingly so as to see to it that the personal finances of the elderly can be managed well (Ageuk.org.uk 2020). This simply means that currently since the Elderly are being forced to retire and are being given the pension at an early age, these individuals are not being able to utilize the physical initiative and along with this, their mental ability as well. In regards to this, their expenses are at a high, however, the personal finances often fall short. In consideration of this, increasing this limit will have a positive influence on their lifestyle.
Professional Bodies Involved
The professional bodies such as CII and CISI are under the belief that considerate initiatives and new schemes need to be planned accordingly so as to ensure better entrepreneurial performance and to see to it that the different employees and individuals who are under the ageing workforce category are being able to perform well, contribute to the business dynamics and that their needs can be met with (Telegraph.co.uk 2020). This will ensure a better contribution to the society in terms of economic incentives and additionally, improve the health and overall wellbeing of the individuals as well which will thereby ensure full functioning of public services for all.
References
Ageing.ox.uk 2020. Ageing report [online]. Available at: https://www.ageing.ox.ac.uk/files/Future_of_Ageing_Report.pdf (Retrieved on: 10 Feb. 2020).
Ageuk.org.uk 2020. Age Uk [online]. Available at: https://www.ageuk.org.uk/globalassets/age-uk/documents/reports-and-publications/later_life_uk_factsheet.pdf(Retrieved on: 10 Feb. 2020).
Berry, C., 2016. Austerity, ageing and the financialisation of pensions policy in the UK. British Politics, 11(1), pp.2-25.
Foster, L., 2018. Active ageing, pensions and retirement in the UK. Journal of population ageing, 11(2), pp.117-132.
Jones, R., 2016. The unprecedented growth in medical admissions in the UK: the ageing population or a possible infectious/immune aetiology. Epidemiology (sunnyvale), 6(1), p.1000219.
Kanabar, R., 2015. Post-retirement labour supply in England. The Journal of the Economics of Ageing, 6, pp.123-132.
Shipway, D.J.H., Partridge, J.S.L., Foxton, C.R., Modarai, B., Gossage, J.A., Challacombe, B.J., Marx, C. and Dhesi, J.K., 2015. Do surgical trainees believe they are adequately trained to manage the ageing population? A UK survey of knowledge and beliefs in surgical trainees. Journal of surgical education, 72(4), pp.641-647.
Telegraph.co.uk 2020. Article. [Online]. Available at: https://www.telegraph.co.uk/news/2019/10/21/number-85s-uk-double-25-years-amid-fears-social-care-crisis/ (Retrieved on: 10 Feb. 2020).
Vincent, J.A., Patterson, G. and Wale, K., 2017. Politics and Old Age: Older Citizens and Political Processes in Britain: Older Citizens and Political Processes in Britain. Routledge.
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