At the beginning of the 20th Century retirement was, for most people, short and unpleasant. If it was no longer possible to work, savings had run out and charity from the family was not available then the last recourse was to the Workhouse, at the expense of the Parish.         

Retirement in the Twentieth Century. 

  • 1909. The first Pensions Act was passed when a means tested state pension was introduced for 70 year olds.
  • 1928. A contributory national insurance scheme was introduced. Retirement age was reduced to 65 and pensions were no longer means tested but were paid automatically to all. There was no compulsion to stop work in order to qualify so the number of people still working remained high.
  • 1942. The Beveridge Report was published which became a blue print for the post war development of Britain.
  • 1946. The introduction of the National Insurance Acts was the catalyst for the expansion of retirement during the next forty years. The Act confirmed the state pension qualifying ages as 60 for women and 65 for men. Retirement at 65 for men quickly became mandatory in a wide number of  occupations, particularly as working after retirement was penalized by loss of state pension. 
  • 1960's. The basic State Pension was equivalent to 20% of average earnings.   
  • 1979 State pension increments were pegged to the retail price index and no longer to average wage index.    
  • 1980. The concept of The Third Age emerged when people started to lead more active retirements based on leisure, hobbies, voluntary work and renewed study.
  • Industrial and economic restructuring lead to the introduction of early retirement.
  • 1989,  British retirees—no longer are penalized by the "earnings rule,
  • is now the equivalent of 14 percent of average earnings.3

 20001 and beyond. 

  • 14.4 million people were born in UK between 1946 and 1964 and are known as the Babyboomers. They will become state pensioners from 2007. At the same time the birth rate is slowing down with the consequence that by 2016 people over 60 will constitute nearly a quarter of the population.

  • state pensions will continue to decrease in value and additional sources of income will be essential.
  • The Third Age, will become a period of productive ageing - where people are active, healthy, and want to continue with employment, self-employment, part-time or flexible working, further education and want to learn new skills, etc.
  • skills shortages will encourage the introduction of flexible retirement arrangements and people between 50 and 70 will become an important part of the workforce.
  • 'retirement' will become the Fourth Age. It is now related to slowing down rather than age but it is still an active period as more people remain fit and healthy.
  • people are not only living longer but also voting longer, are less apathetic about politics and will retain their political strength.
  • individuals will become more responsible for their own health and welfare and will need to be aware of how much or how little help they can expect from the state.
  • demands for residential care will increase but only a small percentage of older people will need it.
  • consumer services will increasingly be tailored for the over 50's as the market discovers their potential purchasing power.

 

Retirement | Life Planning | Change | Finances | Health | Relationships | Contact Us
Registered Office: 20 Bourne Court, Southend Road, Woodford Green, Essex IG8 8HD
Registered in England and Wales. Company Registration Number 3204819
Content Copyright © by AMS    Design Copyright ©  by

 

Retirement | Life Planning | Change | Finances | Health | Relationships | Contact Us
Registered Office: 20 Bourne Court, Southend Road, Woodford Green, Essex IG8 8HD
Registered in England and Wales. Company Registration Number 3204819
Content Copyright © by AMS    Design Copyright ©  by