Geography Unit 1, Going Global Case Study 4 - Paying their own way? The UK's elderly population

Income for retired people in the UK can be complicated. The government pays a state pension to men over 65 and women over 60 (65 from 2050). This is little more than a subsistence wage. Additional state benefits include subsidised housing for those on very low incomes and free prescriptions. People need to have additional income sources if they want to continue living in the style they were accustomed to when working. Most retired people get their income from a variety of sources, which may include: ~The state pension. This is a universal entitlement that is available to everyone, whatever their income. It was introduced in 1946 as part of the National Insurance Act. In return for regular contributions from their wages (with additional contributions paid by the employer and the government), every worker is entitled to a weekly state pension upon retirement.~Other state benefits. Housing costs are paid to those pensioners with no savings. The government gives free television licences to the over-75s, and a £200 winter fuel allowance is provided to the elderly. Local councils subsidise the cost of care homes for those who cannot look after themselves, and may issue free travel passes for trains and buses.~Company and personal pensions. A company pension scheme may continue to pay a retiring employee a proportion of his or her final salary for as long as they live. Personal pensions can be built up through a lifetime of voluntary saving.~Continued employment. Many elderly people who have worked in skilled occupations continue to work into their seventies and eighties. They may work as consultants. ~Other investments. Many older people own their own houses and can therefore borrow money from banks. The banks reclaim their money upon the owner's death and the sale of the house. This is known as 'equity release'. Older people may have stocks and shares and can continue to make fresh investments that yield new profits.~Family support. In poorer families, children may provide financial support for their aged parents. Of course, this works both ways. Older people with savings may also help support younger members of the family - grandparents might help with university fees, for instance. The idea of an 'elderly population' is an oversimplification. There is often a great difference - in terms of both physical health and ability to generate income independently - between highly active people in their seventies and more infirm and increasingly dependent people aged 80 and over.It should be noted that younger people (under 40) may not be saving for old age in the way that their parents did, especially given the high costs of housing and the burden of student loans. As a result, financial dependency of the elderly may become even greater over time.  

Paying their own way? The UK's elderly population