John’s Blog 87 – Pensions – Census 2

I have completed my initial analysis of the Census 2011 results for England and Wales for the over 65’s and the comparison with earlier Census results and can state emphatically that we are NOT repeat not living longer. This is a myth put forward by successive Governments as a penny pinching measure to save money on pensions and increase taxation income by delayed retirement and increased NI / contributions, which is not in the best interest of the working population. The problem is the increasing numbers entering retirement, which distorts longevity effects, as these numbers pass through the ages. However a major part, some 80%, of these have paid good taxes and NI and do not deserve to have their retirement eroded or diminished. We may have gained the odd six months or even a year over the past ten to twenty years, but not the five or ten years we are being told, and of course there are more of us about over 65, up 13% since the last 2001 Census. The population is growing and we are living longer, but this is not confined to the retired. The number at age 64, who will hopefully pass into retirement has increased by a massive 46% since 2001, that is almost three people for every two then. Some 85 % of males and 90% of females will survive from birth to age 65 and this is the major difference, although this trend is just moving into the 65 to 70 ages, it has not had a large impact yet. With modern living excesses it may not even do so. If one looks at the survival from age 65 and decline per 1000 from there, one finds that at age 70 it has reached 71% and by 75 it is 47% and decreases rapidly to 14% by 85; in 2001 it was 72, 47 and 12% and the curves since 1991 are a good match overlay, indicating little change in longevity. There is no justification whatever for increasing retirement age by even a year, if as proposed it is moved to age 70, then 29% some 2.7 million of the present over 65 population will have no retirement at all and the rest will lose five of the best years of their retirement lives. Recent report on health in retirement state that from 65 there are 8 years of healthy living and some 12 years before some form of disability sets in, so reducing this by even a year is criminal deprivation. There was outrage at child labour, forcing children to work from 8 years on, so what is the difference when one comes to the elderly, why should we force them to work in their twilight years. The problem is money, resulting from the improvident way the State has managed pension provision, we all pay substantial National Insurance contributions, which are checked to ensure we have adequate qualifying years. Then the contributory scheme stops dead, because the money has been spent and there is nothing in the kitty to pay pensions. This is fraud on a grand scale, resulting in the State paying out minimal benefit pensions at a poverty level and now even conspiring to avoid doing that. NI is no more than a tax burden and needs to revert urgently to its original aims. It is not impossible, it just needs a little of the financial juggling the Government appears so adept at. On an individual level, there is lot you can do to protest, initially on retirement age and then pressure for a better more equitable return on NI pension contributions, it is your retirement time and money, so shout about it, tweet like mad, email your MP, Ministers, Employers, Trade Unions and any one else concerned. We need a new pension regime which recognises the contributions made by individuals as their personal savings, put aside for their own benefit and subject to their will, flexible enough to allow them to retire when they want to, as soon as they have adequate funds, and secure enough to guarantee a good return. There will be a need to pay something more, but this is already in hand with increases in NI and Public Sector contributions, and in October Nest starts, to cover all in work and not at present in a Private scheme. This money needs to be put aside and made to work hard, directly for member contributors alone, not to meet the existing liabilities and debt the State has built up or to pay benefit pensions for those not working. Contributory Pensions are not a social benefit and should not be made so, you should take out what you put in plus a reasonable growth and return, it is no different to personal savings, although there could be room for some wealth redistribution amongst members. It is time for a change to a sensible economic and fair system!