Rise of the 'Wearies':      More Pensioners Working In
              Their 70s
 
  
 
Growing numbers of pensioners will be forced to take part-time and consultancy work into their 70s because they cannot afford to retire, a think tank has warned.

Pensioners will be turned into 'Wearies' - Working, Entrepreneurial and Active Retirees - because of the downturn, according to Future Foundation. Photo: ALAMY

A new generation of “Wearies” – Working, Entrepreneurial and Active Retirees – is being created as they work into their 70s and beyond due to the pensions crisis, it is claimed.

Researchers said the development will result in the traditional image of pensioners relaxing in old age being transformed because many people can no longer afford to put their feet up.

According to figures, more than half of those who have already retired said they would be prepared to do part-time work to boost their pensions.

But that figure jumps to three-quarters among those who are yet to retire. The disclosure – in a study by the think-tank Future Foundation – comes amid growing fears that pensioners are struggling to make ends meet in the downturn.

The cost of living for pensioners is rising faster than for the rest of the population as they spend a greater proportion of their income on food and fuel – where prices are rising fastest.

Pensioners have also seen their income from savings sharply reduced because of low interest rates.

It is believed the situation will get worse for future pensioners because of a squeeze on public sector pensions combined with a decision by many private sector companies to close final salary schemes.

Martin Palmer, head of corporate benefits marketing at Friends Life, who commissioned the study, said: "We're expecting the traditional image of the pensioner with slippers and rocking chair to change completely.

"Many will not have saved adequately for a secure retirement and, with years of fiscal austerity taking their toll, by 2020 many people in their 70s simply will not be able to afford to give up working.

"Necessity is the mother of invention and 'Wearies' will be among the most innovative and entrepreneurial contributors to the UK economy, despite their senior years."

Almost 1,000 people aged over 18 were asked about their attitude to working in retirement as part of the study – “Pensions: Crisis and Reforms”.

According to the report, 51 per cent of those who are already retired said they would be prepared to do part-time work to boost their pensions, with numbers rising to 75 per cent among those yet to retire.

Many of tomorrow’s OAPs will look to supplement their retirement savings by become self-employed in their later years, it was revealed.

The study said many are likely to supplement their income buying and selling goods on websites like eBay, while others will turn their front rooms into offices or cottage industry workshops or a nursery. Those with manual skills might set up gardening or home help businesses to make money helping neighbours, academics predicted.

A total of 59 per cent said they would run "a small, one-person business from home" and 21 per cent would consider gardening for elderly neighbours or for the local council.

One third said they would rent out a spare room to a lodger, and 14 per cent said they would think about moving in with other family members.

   6 Million UK Households Could Not Survive Until The
      Weekend On Savings

28% of households have less than £250 in savings 

New research from direct bank first direct reveals that 28% of households have less than £250 in accessible savings.

The survey of over 1000 UK households reveals that more than a fifth (21%) have no savings at all to fall back on and 7% have savings less than £250 set aside as a financial safety net. This is the equivalent of just three days average monthly household take home pay, and with average monthly household outgoings currently £1,536, these savings would last just five days. 

Those aged between 25 and 34 are the least prepared for a financial emergency; 39% have less than £250 in savings, with 30% saying they have nothing set aside at all.

Women are far less prepared than men; 24% admit they have no savings and 8% have less than £250 set aside compared to 16% and 6% of men respectively. Across the UK, people in the North East are least likely to have any savings set aside at all with a third (33%) admitting they have no financial safety net.

Thirty-two per cent of people admit they would be unable to cover their rent or mortgage at all if they were to unexpectedly lose their main source of income.

Worryingly, 11% of people would use a personal loan or credit card and a further 11% their overdraft to help pay for essential outgoings in the event of a redundancy.

How Brits would cover monthly outgoings if made redundant

- Expect partner to cover them (26%)
- Has income protection insurance (16%)
- Would borrow from family (14%)
- Would use credit card / personal loan (11%)
- Would rely on overdraft (11%)

Bruno Genovese, Head of Savings at first direct commented:

"These findings demonstrate a worrying lack of financial preparation among the British public. With the current climate of uncertainty, it is of utmost importance that families are setting aside a realistic sum of money to be used in emergencies. As a general rule it is advisable to have 3 month's salary set aside in accessible savings for a rainy day.

"By putting away small amounts each month Britons can help themselves build up an emergency savings pot as provision for any eventuality without having to rely on a solution that will get them further into debt."

first direct's tips for setting up an emergency savings fund:

- Set aside a small sum each month into a separate savings account, this could be automatically swept from your current account at the end of each month or mean giving up a treat such as your daily shop-bought coffee.
 
- Choose an easy-access account as you never know when you might need to access your emergency stash.
 
- Shop around for competitive rates on your savings to ensure you are making the most of your emergency fund.
 
- Set a realistic weekly budget and stick to it, this will help you to see where your excess salary goes, and where you can make savings.

- Get into the savings habit - set up a monthly standing order into your savings account, that way you won't be tempted not to save for one month.