Executive Summary

Much has been written on the ‘pensions crisis’ with many warnings of extremely difficult times ahead, not just for retirees, but for all us. We recognise that many challenges lie ahead but at the same time we believe that there is room for optimism as we look forward to 2020.

 • A healthier, more energetic community of older workers. For many older workers better health creates significant opportunities both in terms of financing retirement and of being fulfilled through work in later life – 51% of workers want to continue working after the retirement age so they can remain active.

• Employers will need to facilitate a graduated retirement and will be motivated to do so by skills shortages which will encourage them to retain knowledge workers.

• Property assets. With equity release schemes being gradually rehabilitated in the public consciousness, the considerable asset that many older people live in can be used to fund retirement more easily. Among retired people 77% want to remain in their own home.

• Older individuals can make a huge contribution to local communities through volunteering and are already doing so with 51% of volunteers being aged 60 years or over (British Household Panel Survey / The Future Foundation).

• Less than one in five retired people think that it’s their responsibility to leave an inheritance to their children. Instead retired people expect to help their children and increasingly their grandchildren with education and housing costs. Furthermore, 26% of grandparents expect to contribute to the cost of tertiary education.

• Auto-enrolment. This promises to increase the numbers of people saving for a pension by several million. While the effect may not be truly apparent by 2020 the prospects for the longer term are good. The proposals for the National Employee Savings Trust (NEST) pension scheme promise to provide some income for several million people who previously would have had nothing beyond the state pension.

• The internet is the leading source of advice on pensions – 29% of citizens seek advice online (compared to 25% receive advice from Independent Financial Advisers and 23% who use banks for financial guidance).

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