Financial Planning for Individuals: Ageing Workforce and State Pension

This report, prepared as a magazine article, examines the financial planning implications of an ageing workforce in the United Kingdom, focusing on the proposal to raise the State Pension Age to 75 by 2035. The article explores the issues faced by the ageing workforce, including health, employment, and social challenges, and the potential advantages of employing older workers, such as experience and knowledge, while also acknowledging potential disadvantages like health concerns and differing work styles. It considers government initiatives, the fairness of the proposed pension age increase, and alternative solutions. The report also discusses the impact on organizational structure, healthcare, and personal finances, emphasizing the importance of personal financial planning in addressing these issues. It highlights the roles of professional bodies like CII and CISI in devising strategies to support the ageing workforce and improve their economic contribution, health, and well-being. The article references various sources to support its arguments and provides a comprehensive overview of the topic.

Running head: FINANCIAL PLANNING ARTICLE
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2AGEING WORKFORCE
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

3AGEING WORKFORCE
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
1. 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.
2. 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.
3. 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

4AGEING WORKFORCE
1. Health issues: These individuals experience
considerate health issues which may impact
their work (Berry 2016).
2. Age group difference: The aged individuals
may not necessarily be able to gel with the
existing employees due to the age
difference.
3. 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

5AGEING WORKFORCE
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).

6AGEING WORKFORCE
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/docum
ents/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/numbe
r-85s-uk-double-25-years-amid-fears-social-care-
crisis/ (Retrieved on: 10 Feb. 2020).

7AGEING WORKFORCE
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.
.