Saturday, June 14, 2014

Why working long is obvious - how is the problem

The UK's Department for Works and Pensions has just published a report called : "Fuller working lives a framework for action."

Houston we have a problem! In this case it is UK Inc we have a massive problem.

Here are the scare numbers from the first couple of pages of the report

  • Out of 10.2 million people aged 50-State Pension age, 2.9 million (28%) are out of work 
  • Over half of men and women have already stopped working by the year before they reach State Pension age
  • There are 12 million adults Brits, below State Pension age heading towards an inadequate retirement income with 40% of these spending less than 35 years in work

The list of horror numbers goes on and on and on.

A couple of things. First, this situation has not just occurred, Anybody with a modicum of interest in the area knew about this a decade ago. Secondly, it is not much point going on about the problem when there is little that you can do about it.

The report witters on about the psychological value of continuing to work and all of that sort of stuff.

The bottom line is this. Most people who fall out of employment in their 50s find it next to impossible to get employed at anything like their previous salary if they can find a job at all.

I am painting the picture in black and white and there are lots of shades of grey (excuse the pun).

There are some job types that are in huge demand but lots of people with skills that, to put it bluntly, are not of much use.

Why do I bother to tell you about this issue. Well it highlights the massive group of older consumers who are not going to be consuming very much during their 50s, 60s, 70s and 80s and so all the more reasons you had better be clear who you are targeting, Dick Stroud

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