Tag: older people

Later life debt fears rise, as over 55s worry about mortgage rate increases

Almost half of people (46%) over the age of 55 who are paying off mortgages are worried about rising rates, continuing to meet repayments and how to pay their loans off in full, research from PensionBee, the leading online pension provider, suggests.

The research carried out in June indicates that three quarters of respondents over age 55 who have mortgages are worried about rising interest rates (76%, Table 1) and concerned about how they will manage their payments to the end of term (62%, Table 2).

Respondents aged over 55 with a household income of less than £30,000 were more worried about rate rises than average (83%) and also about managing repayments to the end of the term (72%).

One in five over 55s on interest-only mortgage deals

Worryingly, less than half of over 55 respondents said they are on capital repayment mortgages (42%, Table 4), while 40% said they are on ‘part capital repayment, part interest only’ and almost one in five (18%) of over 55 respondents with mortgages are on interest-only deals, meaning that when they get to the end of their mortgage term, they will have to have enough cash available to pay off the remaining capital balance. 

Uncertain repayment plans

Almost half (46%) of mortgage holder respondents aged 55 or over admitted they are unsure how they will pay off their mortgage in full. The most common remaining mortgage balance was less than £50,000 (Table 10), however, a small proportion (6%) of respondents reported their balance exceeding £250,000. 

Using a capital lump sum (22%, Table 9) was noted as the most common way respondents over age 55 were planning to pay off their mortgage in full, while using a pension (16%), selling the house (11%) or using equity release (5%) were other options being considered. 

Becky O’Connor, Director (VP) Public Affairs at PensionBee, commented: “The current mortgage rate rise shock may be contributing to an abrupt rethink of retirement plans and causing worry and uncertainty among the population of older homeowners still repaying loans. 

“Anyone hoping to wind down from work as they approach their pensionable years and who still has a mortgage to pay could face a significant reality check in the coming months. Their mortgage could suck away even more of their disposable income, potentially forcing them to work for longer. 

“Those on interest-only deals will not only face potential rate rises, but the additional headache of a looming deadline for repayment of their capital balances. Money they might have earmarked for repaying the capital at the end of the term might now need to go towards monthly repayments. 

“It’s worrying that almost half of respondents in this older age group are not sure how they will repay their mortgage in full. One in five are pinning their hopes on a capital lump sum, while one in six think they will use their pension. 

“People can access their pension from age 55 and can take 25% as a tax-free lump sum. With mortgage rates rising so rapidly, it may be tempting to tap the pension to pay off a home loan. 

“Having a mortgage that runs into retirement can be a problem, because repayments can mean people have to take more out of their pensions in the early years.

“Anyone who is considering this must bear in mind the potential impact of using up tax-free cash early on in retirement and then running the risk of not having enough money later on to maintain enough income for a decent living standard.

“Pensions are designed to provide this income. While it can make sense to use some of the pot to pay off mortgages, it’s good to be aware of what this can do to living standards in retirement.” 

Working longer to pay the mortgage

Almost one-in-five (19%, Table 3) mortgage holder respondents over the age of 55 are not working, with 22% saying they work part-time and 59% working full-time. Looking just at respondents aged over 65 who have a mortgage, the majority of whom will also be in receipt of the State Pension, 65% said they are still working full-time or part-time, suggesting that the need to continue to repay a home loan keeps people in work for longer. 

There was a correlation between employment status and repayment type, with full-time workers over age 55 more likely to be making capital mortgage repayments and unemployed people more likely to be making interest-only payments, which tend to be lower.

Later life rate rise expectations

Almost half (47%, Table 5) of homeowner respondents aged over 55 identified their current mortgage interest rate as between 2 and 4%, with 12% on a lower rate of 1 to 2% and 25% on a rate of 4 to 5%. Just over one in 10 said they are paying between 5 and 6%, and 5% said their mortgage rate was over 6% (Table 4 below).

Just over a quarter (28%, Table 6) of those surveyed noted that their current mortgage deal is coming to an end either this year or in 2024. The vast majority (76%) of over 55s expect their repayments to increase in the next few years – at a time in life when people ideally look forward to lower housing costs.

Digital Divide: Older people struggling to pay for broadband at risk of further financial losses

Nearly half (44%) of older people in Scotland on a low income1 have struggled to keep up with their broadband bill in the last 6 months, according to new research from the older people’s charity Independent Age.

Of that number, 18% found it a constant struggle, and 26% struggled from time to time.

Independent Age says the findings from YouGov commissioned polling raise fears that the cost of living has deepened the ‘digital divide’ and warns that older people in financial hardship may become even more isolated and could face additional costs if they are forced to shut off their internet access.

The survey also found:

  • More than 1 in 3 (35%) older people in financial hardship said they are worried they will not be able to pay their broadband bill over the next 6 months.
  • 36% are currently having to cut back their spending on their internet, phone or TV subscription services a great deal or a fair amount.
  • Almost 1 in 10 (9%) have already cancelled broadband and phone services over the winter in an effort to save money and 6% had already taken this action before the winter began, to save money.

The charity warns that not being able to go online could mean that older people on low incomes are unable to access information about financial entitlements or services, miss out on savings by not being able to search for the best deals and lose vital social connections.

It’s calling on broadband providers to further promote their social tariffs so that older people in financial hardship are aware that support for their internet costs is available. The charity also believes the Government has a role to play in  promoting social tariffs as part of the support available during the cost of living crisis.

Social tariffs are cheaper broadband contracts for those receiving means tested benefits, such as Pension Credit (the State Pension top-up for those on a low income). However, current take-up is low, with just 5.1% of eligible households using them2,and Independent Age say that eligible older people are going without as a result.

Morgan Vine, Head of Policy and Influencing at Independent Age, said: “The choice to engage online shouldn’t be taken away due to cost. We’re hearing from people in later life who are struggling to pay their broadband bills, cancelling their services, or making considerable sacrifices to afford this expense, such as going without fresh food.

“Cancelling broadband can mean someone misses out on the best deals, social connections with friends and family or on finding information about financial support they could be entitled to, such as Pension Credit or Attendance Allowance. 

“Independent Age is calling on broadband providers to do all they can to support vulnerable customers. We also think the Government has a role to play when promoting the options available now and thinking about consistency in the longer term. At the moment it’s a confusing picture for older people on low income, with each provider offering different options.

“While broadband social tariffs are available from most major providers, and can be a great help for those in financial hardship, take up is extremely low. Independent Age wants providers to proactively promote their social tariffs and target their activity at all eligible groups, including ensuring older people on a low income are not missed out.”

Details of all available social tariffs can be found on Ofcom’s website here: https://www.ofcom.org.uk/phones-telecoms-and-internet/advice-for-consumers/costs-and-billing/social-tariffs#full-list-of-available-tariffs, or people who think they might be eligible can contact their provider to find out more.

Case study – Maggie’s Story

“There’s a growing assumption that we can all do everything online now, but because of my financial situation, I’ve had to cancel my phone and Internet contracts. So now if I want to do anything that involves being on the Internet, I need to get hold of a library that’s open at certain times.

“I don’t know what’s happened in other parts of the country, but we used to have access to Wi-Fi on Greater Manchester’s buses and trams. That disappeared during COVID. I’m assuming it was taken off as a cost-saving thing because people weren’t traveling on the buses, but they’ve never put it back.

“And that doesn’t just impact older people who don’t have Wi-Fi — it impacts young families who are trying to do stuff whilst they’re out and about because they can’t afford to pay for the subscription at home.”

Cost of living crisis impacts mental health of 2 in 3 over-40s, finds UK Care Guide workforce research

Research* from the UK Care Guide has found startling levels of stress amongst the workforce aged 40 and over, with over two thirds (67%) reporting increased levels of stress thanks to the cost of living crisis.

The survey, based on the data of 1487 respondents, found that a huge 72% directly attributed their increased levels of stress to the tightening of household budgets as a result of the cost of living crisis.

While work-related factors were a major cause, half of the respondents also identified personal and family-related factors as sources of stress.

Saq Hussain of UK Care Guide commented: “Our latest UK Care Guide research reveals a worrying surge in stress levels among UK workers aged 40 and over in the face of the cost of living crisis.

“This issue cuts deeper than just affecting productivity at work. It’s intruding into individuals’ personal lives, straining relationships and fundamentally undermining their mental wellbeing.

“Amidst these challenges, it’s commendable that almost half of those surveyed have adopted some form of coping mechanism to manage their stress levels. However, the glaring outlier is the lowly 20% looking for professional mental health support. This number signifies not only a potential stigma around seeking mental health assistance, but also perhaps hints at the lack of easily accessible mental health services.

“Our findings highlight an urgent call to action for employers, healthcare organisations, and policy-makers alike. There is a pressing need to not only address the root causes of workplace stress but also to create a supportive environment that promotes mental health resources and empowers individuals to effectively manage their stress levels without fear of stigma.”

For more information on the survey, please email: media@ukcareguide.co.uk 

New report finds high utility, food and broadband costs are squeezing older people’s budgets across Scotland

High costs across the board, from utilities and food to accessing the internet, are causing misery for thousands of older people across Scotland, warns national charity Independent Age.

Laid bare in their new report – The Hidden Two Million – is the profound impact high costs are having on those in later life living on the lowest income across the UK. In Scotland, over half (56%) of those polled on a low income (less than £15,000 per year) say they are worried about the cost of electricity. When asked about heating, still over half (54%) were concerned about the utility’s affordability.

Food inflation has been at record highs the past year, and this has also had a harmful impact on those on the lower end of the income spectrum. Polling by Independent Age shows that a staggeringly high 45% of older people living on £15,000 per year or less are cutting back on their food spending and well over a third (42%) of the same group are concerned about covering their food bills for the next 6 months.

Across the UK, 20% of single pensioners, and 7% of couple pensioners have no other source of income outside the State Pension and other benefits. Older people in financial hardship have shared with Independent Age that managing on a fixed income means, when faced with increased bills, the only options they feel they have to choose from, are to cut back – which could harm physical and mental health – or go into debt.

It’s not just big bills that are squeezing older people’s finances. Smaller but important bills, such as phone and broadband, are also causing money worries.

New polling commissioned by Independent Age shows that 39% of older people with an income of less than £15,000 per year, are already cutting back on their phone usage to save money while 35% of the same group are fearful of not being able to afford their broadband bill during the next 6 months.

This is concerning as not being digitally connected can lead to social isolation and limits access to better deals only found online.

Recommendations

Independent Age is urging both the government and private sector to do the following in support of older people in financial hardship:

  • Utility companies must provide and promote financial support to everyone on low incomes, including older people
  • The UK Government should introduce national social tariffs across utilities such as energy
  • The UK and Scottish Governments must ensure that everyone in financial hardship in later life receives the financial support they are entitled to

June, 67, Glasgow, is currently struggling financially. She said: “Now I know exactly what’s getting paid with my pension, I know what’s coming in.

“I’m very cautious with money. I’m careful to make sure I’ve got enough to get me my food. You’ve got to be careful because you can still run out at the end of the month, not got any money, know what I mean, then you end up going to the food bank.

“If something big was to come up that was needed, say my fridge, God forbid, or my cooker or washing machine, it would be a worry. I would have to get help. I can’t go out and buy big things.

“I cannot go for a cup of tea or buy a wee meal for my friends, it’s irritating because you want to do more. But I’m restricted, I’ve not got the finance for that. So you just forget it. I live a quiet life.”

Debbie Horne, Scotland Public and Policy Affairs Manager at Independent Age said: “These new figures are a stark reminder of just how frightening turbulent economic times can be for those on the lowest incomes.

“Thousands of people in later life across Scotland are being financially squeezed in every direction, this can be damaging to people’s mental and physical health.

“We hope that all utility companies will review their support for their most vulnerable customers, including older people, and ensure they are protected from future spikes in costs.

The hidden two million. The reality of financial hardship in later life

Independent Age launched its powerful report at an event last week to raise awareness of its renewed focus to support the more than 2 million older people across the UK living in financial hardship (including the 150,000 in poverty in Scotland), and those hovering above the line in a financially precarious situation.

The new research provides the latest insights into poverty in later life.

The event also saw the premier of the charity’s new thought provoking film that amplifies the voices of older people currently living in financial hardship.

Here is the link to the film:

https://www.youtube.com/watch?v=Roq07aRNZi4&ab_channel=IndependentAge

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On Yer Bike!

New Ageing Well Bike Course starting next month

For those older adults looking to get back in the saddle again, Ageing Well will be starting a new 11-week cycling course on Monday, 10th July, where participants can develop those dormant skills in a relaxed and social atmosphere with like-minded companions.

The level 1 course, based on Cycling Scotland’s Bikeability material, will get participants comfortable again on a bike, developing skills, at a pace that suits them, on the 400m track at Saughton Sports Centre, a traffic free environment on which to learn to cycle. The course will begin on Monday, 10th July at 10am-12noon and run until 18th September 2023.

This is NOT a beginners’ course teaching people to cycle but is aimed at older adults who have not cycled for some years and who want to gain confidence and start cycling again. They will learn skills such as stopping safely, indicating correctly, and mastering the gears.   Bikes and helmets will be supplied but participants can also bring their own. The cost is £3 per week.

Cat Wilson, Edinburgh Leisure’s Project Officer for Older Adults explained: “Cycling is a great way to keep fit, active and mobile and enjoy the outdoors and countryside on the amazing network of dedicated cycle paths in the Edinburgh area.

“Perhaps you’d like to join grandchildren on family rides or just to meet some new people?  And don’t worry if you haven’t been on a bike for ages or don’t currently own one, we even provide bikes, helmets, and Hi-Viz vests, so all you need to bring is yourself! The courses are led by experienced, fully trained volunteers who are passionate about cycling and supporting those who would like to get back in the saddle.”

A level 2 Course will commence directly after Level 1 on Monday 25th September 2023 with 4 weeks from Ainslie Park and 4 weeks from Meggetland. This course will further explore the cycle paths of Edinburgh using the skills participants have learnt from Level 1.

For more information and to book a place on the cycle course, contact a member of Edinburgh Leisure’s Active Communities team on: Tel: 0131 458 2260 / Email: active@edinburghleisure.co.uk

The Ageing Well project promotes healthy lifestyles for older adults (typically 50+) in Edinburgh. The project is a partnership with NHS Lothian, Edinburgh Leisure and Pilmeny Development Project and is part of the UK Ageing Well network, which aims to increase the expectation of good health in later life.

Scottish community groups celebrate after winning public vote for National Lottery funding

SUCCESS FOR MORNINGSIDE’s OPEN DOOR CAFE MUSIC PROJECT

Nine hard-working Scottish community groups have won up to £70,000 each of National Lottery funding in this year’s The People’s Projects. The vital funding was awarded after they won the public over with their plans to make a life-changing difference in their local communities.

The groups were among 95 worthwhile projects across the UK in the running to share over £4 million in National Lottery funding as part of this year’s The People’s Projects.

The People’s Projects sees The National Lottery Community Fund, ITV, UTV and the Sunday Mail (in Scotland) working together to give the public a unique say in how National Lottery funding should be invested in their local area.  

One of the winners was The Open Door Edinburgh’s Music for Health and Wellbeing project.

The Morningside project will use the power of music – songs, sounds and rhythms – to improve the health and well-being of older people with dementia and other support needs. They will also provide a range of Daycare services that helps the elderly, and the most vulnerable in the community, to age well.

Visit www.thepeoplesprojects.org.uk to see a full list of winning projects across the UK.

Since The People’s Projects started in 2005, it has awarded around £45 million to over 1,000 good causes, delivering vital grants to the heart of UK communities.

Kate Still, Scotland Chair, The National Lottery Community Fund, said: “The People’s Projects highlights the incredible work of inspiring community groups in Scotland and throughout the UK. We are proud to have given local people throughout the country a say in where over £4 million of vital National Lottery funding will go.

“We congratulate this year’s winners and look forward to seeing them make a life-changing difference in their communities.”

The National Lottery Community Fund, the largest funder of community activity in the UK, distributes money raised by National Lottery players, who raise over £30 million each week across the UK for good causes.

Last year, it awarded over half a billion pounds (£579.8 million) of life-changing funding to communities across the UK, supporting over 14,500 projects. Over the last three years, its funding has reached every constituency and every local authority in the UK.

To find out more visit www.TNLCommunityFund.org.uk  

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Residents celebrate Easter in style

Staff and residents at Barchester’s Strachan House care home in Blackhall celebrated Easter with a whole host of different activities including an Easter Egg Hunt, hatching duck eggs, afternoon Easter tea for the residents and local community and Easter baking sessions.

Good Friday saw residents at Strachan House enjoy an eggs-tensive range of Easter activities, from an Easter Bonnet parade, egg painting and rolling, to enjoying live entertainment.

Easter Sunday saw residents also tuck in to a delicious tradional Easter lunch prepared by the home’s head chef Paul Gow after hosting a wonderful Easter egg hunt in the beautiful gardens of Strachan House. And if there was any more room from all that chocolate then there was an afternoon tea to relax with amongst family and friends!

General Manager Gordon Philp said “As always, we’ve all been looking forward to Easter. It’s such a lovely time of year – the residents love all the colourful Easter eggs and huge selection of Easter themed activities we had on offer.

“It’s really been an eggs-cellent few days!” 

Muriel who is 102 years old and a resident at Strachan House said: “It has been so lovely to spend time with our families and friends this Easter, though like every Easter, I think I’ve eaten too much chocolate!

” It was so wonderful to see everyone go to so much effort. I have really enjoyed having the ducks hatch and spending time playing with them”

Our varied life enrichment programme keeps residents active, and provides a daily choice of engaging physical, mental and spiritual activities tailored to residents’ interests and abilities. 

Strachan House is run by Barchester Healthcare, one of the UK’s largest care providers, which is committed to delivering high-quality care across its care homes and hospitals. Strachan House provides nursing care, residential care, respite care.

UK State Pension age timetable will remain unchanged … for now 

The UK Government has announced that the State Pension age (SPa) timetable will, for the time being, remain unchanged from the current legislated timetable:

  • SPa will increase from 66 to 67 – between April 2026 and April 2028
  • SPa will increase from 67 to 68 – between April 2044 and April 2046

The government’s second periodic review of the State Pension age sets out plans for a further SPa review within 2 years of the next Parliament. That review will reconsider the rise of the SPa to age 68. The government remains committed to the principle of providing 10 years’ notice of changes to the SPa.

The government’s review was informed by reports from the Government Actuary and Baroness Neville-Rolfe GAD’s Technical Bulletin summarises the findings and recommendations of these 3 reports.

Uncertainty in future life expectancy trends

The Government Actuary’s report sets out the results of calculations illustrating when SPa would increase under different scenarios.

The report considers what the timetable may look like for different target proportions of adult life being spent in retirement and different projections of life expectancy. Other assumptions were prescribed by the Secretary of State, such as the age someone starts their working life and the life expectancy tables to be considered.

The calculated SPa timetables are shown to be highly sensitive to the proportion of adult life in retirement and to the life expectancy assumptions adopted.

Recent slowing improvements in life expectancy and the unknown long-term impact of the COVID-19 pandemic makes projecting future trends even more uncertain.

Person's hands typing on a laptop which shows a graph in grey.

Sustainability of the State Pension

Baroness Neville-Rolfe’s report explains that there are many factors to take account of when setting the SPa timetable. These include sustainability and affordability, as well as intergenerational fairness.

Her recommendations included 2 metrics:

  • the proportion of adult life that people should, on average, expect to spend in retirement should be up to 31%
  • the government should set a limit on State Pension-related expenditure of up to 6% of Gross Domestic Product

Based on these metrics, SPa would increase to 68 between 2041 and 2043.

Government report

The government welcomed the findings from the Government Actuary and Baroness Neville-Rolfe. It also noted a level of uncertainty in relation to the longer-term data on life expectancy, labour markets and the public finances.

Due to this uncertainty, the government concluded that the current rules for the rise to 68 remain appropriate. It does not intend to change the existing legislation prior to the conclusion of the next review which is planned to be within 2 years of the next Parliament.

Proposed reforms to state pension provision in France has caused major public protests across the country.

Strachan House residents paint their Gratitude to an iconic artist

Staff and residents at Barchester’s Strachan House care home in Blackhall got creative celebrating the birthday of one of the greatest post-impressionist artists of all time, Vincent Van Gogh, on 30 March. 

Van Gogh was born in 1853 Groot-Zundert in the Netherlands and he created some of the most famous paintings in the world.  

A prolific artist, Van Gogh’s work was notable for its beauty, emotion and colour.  His paintings have been hugely influential since his death, however during his lifetime Van Gogh struggled with poor mental health, he was virtually unknown and remained poor.  He completed more than 2,100 works consisting of 860 oil paintings and more than 1,300 watercolours, drawings and sketches.

Staff and residents spent the afternoon learning about Van Gogh’s life and his distinct style of painting, then tried their hand at recreating his famous sunflowers in a vase painting. Strachan House thought this was an important piece as Van Gogh himself called the piece “GRATITUDE”

Jimmy a resident at the local care home said “what an amazing day learning some facts I never knew about the artist. The art session in the afternoon was a time for me to be able to be expressive through attempting to recreate the famous sunflower picture”

General Manager, Gordon Philp said: “We have had a fascinating day finding out all about Van Gogh, he was such a talent and created some absolutely beautiful paintings. 

“Many of our residents love to paint and they really enjoyed discussing their favourites amongst his works and trying to recreate his techniques.”

Marion Cooper, a resident, said: “We have had such a lovely day recreating one of his works. You don’t know how relaxing it is and I never thought I was much of an artist until today”

Our varied life enrichment programme keeps residents active, and provides a daily choice of engaging physical, mental and spiritual activities tailored to residents’ interests and abilities.

 Strachan House is run by Barchester Healthcare, one of the UK’s largest care providers, which is committed to delivering high-quality care across its care homes and hospitals. Strachan House provides nursing care, residential care, respite care.