Working longer also good for your health?

Did you know that people aged 55 and over made up 36% of the working-age population in 2016? I did not, however, baby boomers are leaving the labour force in huge numbers, which, coupled with a decline in the birth rate in industrialized countries, is leading to a decline in the working-age population. This will have an impact on the economic growth and sustainability of public pension schemes and the costs of public services, in particular.

Yet, older workers have a lot to contribute to business and society in terms of productivity and knowledge. There are also many physical, psychological and social benefits to push the retirement age to later in life.

But what can employers and governments do to keep aging workers employed? A systematic review of 41 studies conducted in the United Kingdom examined what motivates older workers to remain in employment.

Three main themes emerged from the literature: the nature of work that aging workers prefer, the culture and organizational values they seek, and the measures and job adjustments that facilitate their retention.

Older workers usually have similar expectations as younger workers. They want to be recognized, respected and valued within their organization.

They want to have autonomy, as well as stimulating and varied tasks. They expect their employers to be fair by offering career development opportunities to all employees, regardless of age.

The review also revealed that older workers appreciate using their skills and competencies to act as mentors or team leaders. This helps to concretely recognize their experience, enhance their sense of being useful, foster better intergenerational relationships, and break down social isolation.

The review also highlighted that older workers face different aging-related issues such as physical and psychological limitations and illnesses. Employers who allow part-time work or fewer full-time hours, and who offer psychological support, as well as ergonomic adjustments to work equipment, help to keep older adults working longer.

The review shows that older female workers who are facing sexual harassment or social isolation at work are more likely to choose early retirement. Inclusive human resource policies and adequate management to maintain a positive work environment are paramount to support employees’ health and well-being.

Working longer can increase your pension payout

Japan recently took an interesting step when dealing with its ageing population. The Japanese government policy on the elderly released Wednesday, January 17, said people should be allowed to delay the age they start receiving public pensions, to over 70, with the government hoping they will continue to be part of the labour force even after retirement. This is similar to what Canada does with its Canada Pension Plan. In Canada, the standard age to begin receiving a CPP retirement pension is age 65, which is the month after your 65th birthday. However, you can take a reduced CPP retirement pension as early as the month after your 60th birthday. 

You can also take an increased pension if your benefit starts after reaching age 65. The amount of your pension will depend on how much and for how long you have contributed to the CPP and on your age when you want your pension to start. If you take it before age 65, your pension will be reduced, by up to 36% at age 60. If you take it after age 65, your pension may be larger, by up to 42% at age 70

In Japan, the elderly start receiving pensions from 65 in principle but can choose to start at any time between the ages of 60 and 70. The monthly total increases the more the starting age is delayed, which is the same as Canada.

The reason given by the government of Japan is that the general trend of uniformly seeing those aged 65 or over as elderly is losing credibility. The governments aim is to create an ageless society where people of all generations can be active according to their wishes.

One of the keys to this ageless society is the expansion of the right to choose when to receive a public pension has great significance in a changing society If individuals can choose to delay retirement and get more money on a monthly basis later in life, it could give them a feeling of security about living longer and one of the side benefits is less money being paid to seniors by the government over time.

The new policy is being formulated as the nation’s population demographic ages in an unprecedented manner amid a declining birthrate. In 2025, one in every three people in Japan is expected to be 65 or older, compared to 1 in 6 in the USA and 1 in 4 in Canada

In 2004 the government adjusted pension payments based on the average life expectancy and the number of people of working age. The introduction of this 2004 law had already decreased the amount that seniors can collect from pensions.

All western countries are faced with super-ageing societies and the current social security system should be reformed. In Canada, we are encouraging people to take their pension later as they do in Japan. In Canada, we are also increasing the amount of money people pay into the Canada Pension Plan so they will be able to collect more when they retire. In Japan, the government is taking steps to facilitate re-employment of the elderly, including offering loans from the government-affiliated Japan Finance Corp. for those who want to start businesses and setting up consultation desks for seniors at Hello Work public job placement offices. The outline contains a numerical target to increase the rate of employment among those aged 60 to 64 — to 67 percent in 2020, up from 63.6 percent as of 2016.

The government will also promote measures to enhance seniors’ well-being and reduce their need for nursing care, while steps to prevent their isolation in communities have also been included in the outline.

Despite the range of new policies, convincing people to forgo retirement may be a difficult task and the approach they are taking is not working. The Health, Labor and Welfare Ministry has admitted that only a small number of seniors have chosen to delay retirement so far. By encouraging people to work longer both Canada and Japan are using interesting techniques to keep pension costs under control. The question is will seniors pay into the idea of working longer for a bigger payout?

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How to Increase Your Credit Score

The Christmas bills have finally been paid, but the interest rates are going up, time to consider and think about your credit. Many seniors are surprised that they may have problems applying for big loans not because we have bad credit, but because we may have lower income than when we worked.

Applying or using credit is the best thing to do if you don’t have cash on hand to pay for it. But you can’t just get it so easily anymore because you are a senior and the lender will first do a background check. If everything checks out then it will be approved but your credit score is low, you might have to pay it back with a higher interest rate that could have been avoided if you knew how to increase your credit score. 

Here is one way you can increase your score. 

Get a copy of your credit score and review each item to find out if there were any errors. If there are, call the crediting agency where you got this from and send them the supporting documents to strengthen your claim. If the investigation shows an error on the part of the creditor, they will remove this from your record that will increase your credit score.  

However, if there were no errors and this is caused by excessive spending, then you have to find ways to fix it. 

Since money is the root cause of this problem, you should learn to spend cash only on the essentials. This means food. Surely you can do without a new pair of shoes, clothes or jewelry for the time being. You may be out of fashion for awhile but you can be trendy later on when things are better. 

If it, not cash, it’s probably the credit card that got you in this mess. If you have many, pay off the credit card that has the highest interest rate first then work on the rest. The objective here is to be debt free. When that happens, you can cancel some of them and keep two or three and maintain your credit score, make sure you only use up 25% or less of the maximum limit. 

For those who make a lot of long distance calls, now is the time to reduce them. You can also cancel your subscription to one provider if there is another one that is offering lower rates. The same goes for cellphones as some companies charge lower or have free airtime.

Ever heard the saying “energy conservation?” This does two things. First, you help the environment and second, you save cash. If you don’t have money to pay for debts, taking this step can also help. 

Other ways to come up with the money to improve your credit score include selling some valuables, working overtime and getting a second job. Naturally, you will be saving some money for daily needs so any excess should be placed in the savings account so creditors will know there is cash stashed somewhere. 

It is going to be tough when you are in a hole but this is the only solution to increase your credit score. If you have a few accounts that you don’t really need, close them. Only when things do improve can you can do some of the activities you used to do before like going on a trip or doing some shopping. 

Is there a certain credit score you should strive for? The answer is yes and this should be above 700 because this is what creditors see as ideal. If you are able to reach that, you are in good standing and be able to get a loan at a lower interest rate.