Age UK launches Monitor to track financial wellbeing
Published on 18 September 2012 11:01 PM
To try and give greater clarity to the ongoing discussion of the economics of an ageing population, Age UK today launches its quarterly Economic Monitor.
The Monitor will track a range of indicators chosen to reflect people in later life's economic reality, and present expert analysis of their significance.
The first issue released today looks at the projections made by the Office of Budget Responsibility on the cost of an ageing population, and shows that with planning the additional costs to the economy are affordable.
Michelle Mitchell, Charity Director General of Age UK, commented: 'We hope that the Economic Monitor will help illuminate the debate around our ageing population, which has so far produced more heat than light around the issue. As a society we need to embrace the fact that on average we are living much longer and make the changes to ensure that we are all able to enjoy later life.
'We are also keen to ensure that there is greater understanding of older people's finances. There has been much media coverage of a cohort of the postwar generation that is relatively affluent, but hidden behind those headlines are many more in later life who are really struggling financially.
'The median average income for a single male on retirement is currently £12,500; for a single woman it is £11,500 whilst 1.7 million pensioners struggle to exist below the poverty line.'
Pumping more money into economy is affecting pensioners
The report also looks at the lifelong impact of quantitative easing on pensioners who have been forced to accept a much lower annual pay out from their private pefnsions as a consequence of the Bank of England putting money into the economy.
This annual income is, for most people, then set for life meaning that pensioners will carry the impact of the current financial crisis for the rest of their days. A £100,000 pension pot now buys an annual income worth £914 a year less than when quantitative easing started.
Age UK hopes that the Economic Monitor will help decision makers and opinion formers gain a greater understanding of the economic realities for older people today.
Download the Age UK Economic Monitor (PDF, 2MB)