Jeremy Hunt in plea to early retirees: ‘Britain needs you’

Stubod

Perhaps the gov. could prevent the free flow of EU workers coming into the country, then "arrange" to "lose" £50bn whilst ensuring massive inflation......I am sure that would probably create a situation where a lot of people would have to go back to work anyway?

.....oh, wait a minute... 

[Deleted User]

Albermarle said:

I guess it also depends which type of pensioners they want to go back to work and into what type of jobs

I suspect that most of the usual posters on here are not the target audience, if only because many have large retirement pots/incomes and/or  have at least planned their retirement carefully 

I think it is more unskilled/semi skilled/ skilled workers, they want to go back. Such as lorry drivers, pub/hotel staff, NHS, care workers, shop staff, teaching assistants, manufacturing shop floor workers etc who may have retired by default by not going back after Covid. Or have health issues and could maybe go back to a lighter job.

These may be a bit more nervous about their long term financial position, especially with the current inflation situation.

I think that this is where 'the stick' comes in.  Bring forward the changes to qualifying pension age, therefore leaving many a year or two short of retirement income required. It would certainly make me consider doing an extra year's work (and I'm in a far better position than many).

Audaxer

Pat38493 said:

molerat said:

Pat38493 said:

This was a mad idea that occurred to me a while back.

What about splitting the personal allowance so that people get a separate personal allowance for pension income versus employment income?  

I suspect one thing that puts people off is the knowledge that all the money they earn will be taxed at 20% + NI (or more).

I guess it also depends which type of pensioners they want to go back to work and into what type of jobs.

How would that work apart from increasing the personal allowance ?

Maybe 100% / flexible transferable marriage allowance could be an option.

Probably I haven't thought it through but it would be a "pension personal allowance" that only applies to any pension related income.  i.e. it would allow pensioners to work part time and not pay tax on the first x amount - it could either by the same value as current personal allowance or a different amount.

A good idea, but I think the govt would consider it too costly. As a lot of people already work-part time and receive a pension income, they would also want an additional personal allowance for their pension income.

zagfles

As discussed in the previous thread https://forums.moneysavingexpert.com/discussion/6413040/please-come-back/p3  not sure why the govt and media are blaming people over 50 choosing to retire - the proportion of over 50's who are retired has actually declined in the last decade. By far two biggest causes of the increase in "economic inacitivity" are increases in long term sickness and students.

Students may be a temporary thing, as the "trust the teachers rather than algorithms" mantra during the pandemic when students couldn't take exams normally, revealed that a side effect of COVID seemed to be a massive spike in intelligence leading to far better results, and so more students getting into universities.

Existing students may have opted to stay in education rather than try to find a job during the pandemic, and older people may have opted to become students - due to the ridiculous way student finance works they'll probably get maintenance costs and tuition fees for free.

Maybe they should also look into why our long term sick is so much higher than other countries. Strange thing also seems to be that stuff like whiplash after road accidents is far more common in the UK than other countries in Europe. We don't seem to be as resilient as other Europeans. And jobs like harvesting crops seems to be beyond the skills of the British, and of course Brexit has made it harder to get those highly skilled foreign workers we need to pick our crops.

Getting_greyer

If you're retired, and have sufficient funds to cover it, the marginal utility of working an extra hour reduces much more than if employed. You'd either need to have a significant increase in wage/working benefits or have a punitive policy on pension income. 

I was all for the policy of a national education system or something like it at last election. I think about all those stuck in a rut with low skills/pay. If you could train part time, alongside work, we could have a very productive nation. Or UC increase while training?...I dunno. Anyway, if the retired have no need for funds, it's unlikely they will return to workforce. In times of high employment this means immigration. Either high skilled or train your own nationals.

So there's 4 main points mentioned to fill vacancies and boost productivity in the labour market.

1. Reduce income taxes (carrot for retirees)

2. Increase tax on pensions (stick for retirees)

3. Use public funds to unskill workforce*

4. Adjust immigration policy to entice immigration.

Can't see current government (&possibly next one) going for any of those. So left with the 5th option, which blather and boast about slogans and don't really achieve anything at all.

*this could be financed privately by firms via tax incentives.

EDIT: I mentioned productivity, but looking again, only really option 3 increases it (capital investment different story). Those other 3 options may boost growth though which may or may not include more productive workforce.

Andy_L

diystarter7 said:

Hi OP

I heard about it on the tv and made me lol, LOL, big time

So what this failed clown is saying in part and to those that have decided to jack in work at around 50, etc  - is come back to work and will tax you and tax you and it will mean more money for the gov to squander away when we get hands on the IHT.

Even if they said, come back no tax - I'd still lol at him.

Its time to look at the benefits and what some organisation pay their workers as many on min wages are supplemented via benefits and this should nor be the case.  Companies should pay a proper wage and benefits must not put people in a better postion than those that toil to work and many times worse off after taking off travel costs and food costs never mind the 50 or so hours away from home.

No thanks

When NMW goes up this April a full time wage on the adult rate is a touch over £20k pa. How much should they be paying to make that a "proper wage"

EdSwippet

Getting_greyer said:

3. Use public funds to unskill workforce*

Unskill or upskill? (Knowing this government, they'd probably settle for either.)

bostonerimus

I retired in my early 50s and after 4 years started some part time work to help out an old colleague and his start up company. I get to help practically, but mostly I try to train recent grads so that I’m not necessary any more. For me it wasn’t a financial decision and as I have a car and can afford the commute it’s a pleasant way to spend 20 hrs a week. However, to get more people back into work Hunt needs some firm policies to encourage this promised “high wage economy”. They might include fair compensation, protection of workers rights, a reliable public transportation system so people can get to work, an NHS that works to keep the workforce healthy, reversal of the Brexit/hostile environment for foreign workers. Hunt just saying things won’t do anything, there need to be common sense policies rather than political rhetoric, but I don’t think the current Government is capable of doing that when it is so ideologically polarized and worried about sweeping sleaze under the carpet.

mumf

Politicians are idiots. Usually Public School Idiots. Never had to do real work. Idiots .

Albermarle

mumf said:

Politicians are idiots. Usually Public School Idiots. Never had to do real work. Idiots .

They say the public gets the politicians they deserve.

In practice what that means is that the public has unrealistic expectations of what can be done ( for example wanting better public services and lower taxes at the same time ) So that forces the politicians to make promises they can not keep, because if they told the truth nobody would vote for them.