To engage the Wealth Of Wisdom to be

found amongst older people 

ACTIVE RETIREMENT

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BACK

OCCUPATIONAL PENSIONS

CAMPAIGNING TO:

1. RETAIN FINAL SALARY SCHEMES
2. REINSTATE THE EARNINGS LINK AND REMOVE THE 2.5% CAPPING ON THE ANNUAL UPLIFT FOR INFLATION IMPOSED BY THE 2004 PENSION ACT
3. PROTECT INVESTORS MONEY- largely achieved by the 2004 Pension Act

Earlier this year it was revelled that the “pension black hole” or short fall in pension funds was equal to the entire national debt of Brazil. And according to Hewitt Associates for the first time there were more “defined contribution” than “defined benefit” schemes reflecting the closure of final salary schemes. 96% of delegates at Age Concern Hampshire’s 2005 Conference thought that Final Salary Schemes should be preserved.

Prices are about the cost of living.  Earnings are about the standard of living and quality of life.  As the economy grows so too do the expectations and necessities of life.  Older people helped to build, and continue to contribute to the growth in, the economy and must be allowed to share in this prosperity.  There was a 37% erosion of price linked pensions against earnings between 1981 and 2000.   Low interest rates are also affecting investment income

The 2004 Pension Act capped the annual uplift for inflation to a maximum of 2.5%. If inflation were to run at 3% for twenty years it would halve the purchasing power on top of the 37% erosion against earnings. 86.5% of delegates at Age Concern Hampshire’s 2005 Conference thought this capping should be removed. 95.4% of delegates at the 2003 “Worthy Of Work and pensions” Conference thought the earnings link should be reinstated and 86.9% at the 2005 conference.

Worthy Of Work and Pensions

In 1948 the average life expectancy after retirement was just 3 years.  It is now possible to spend 40% of one's life, or more, in retirement.  It is difficult to make provision for 40 years retirement during a 30 to 40 year working life.  Older people must be able, if they so choose, to work for longer, pay into their pension schemes for longer, be dependent upon them for a shorter time and be provided with an adequate income.  This will relieve the pressure on pension funds for people who are dependent upon them now and those who will depend on them in the future.

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