Britain's government is unlikely to convince people who retired early during the Covid-19 pandemic to go back to work as most are better-off and few make the return after lengthy periods outside the labour force, a think tank has said.
The Resolution Foundation, which focuses on issues affecting low and middle-earners, urged the government to focus on tackling issues such as the high cost of childcare and job support for workers with poor physical or mental health.
Britain has reported a surge in the number of working-age people who are no longer in the labour market since the onset of the Covid-19 pandemic in 2020, prompting concern from both the government and the Bank of England.
Conservative Chancellor Jeremy Hunt — who last month told The Times newspaper that people aged 50 and above should aspire to more than playing golf — is considering measures to boost labour force participation before the presentation of his March 15 budget.
“We need to reboot progress on getting people into work, but we're not going to achieve it by persuading the recent Covid cohort of older workers to 'unretire',” Resolution Foundation economist Louise Murphy said.
“Instead, we need to do more to encourage mothers in low-income families into work, and help people who need to take periods of time-off for ill-health stay attached to their jobs.”
Only one in 10 people aged 55 to 59 who left the workforce after the onset of the pandemic is claiming welfare benefits, so changes to eligibility rules are unlikely to bring many back as workers, the think tank said.
People who had been out of the labour force for two and a half years — as is the case for those who retired in mid-2020 — historically had only a 2 per cent chance of returning to work in the next three months, it said.
If the government wants to make early retirement less attractive in future, the Resolution Foundation said it should consider increasing further the minimum age at which people can gain access to funds they paid into private pension plans.
This currently stands at 55 and is due to rise to 57 in 2028.
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Teaching your child to save
Pre-school (three - five years)
You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.
Early childhood (six - eight years)
Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.
Middle childhood (nine - 11 years)
Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.
Young teens (12 - 14 years)
Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.
Teenage (15 - 18 years)
Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.
Young adulthood (19 - 22 years)
Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.
* JP Morgan Private Bank
SPEC%20SHEET
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OIL PLEDGE
At the start of Russia's invasion, IEA member countries held 1.5 billion barrels in public reserves and about 575 million barrels under obligations with industry, according to the agency's website. The two collective actions of the IEA this year of 62.7 million barrels, which was agreed on March 1, and this week's 120 million barrels amount to 9 per cent of total emergency reserves, it added.
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UAE rugby in numbers
5 - Year sponsorship deal between Hesco and Jebel Ali Dragons
700 - Dubai Hurricanes had more than 700 playing members last season between their mini and youth, men's and women's teams
Dh600,000 - Dubai Exiles' budget for pitch and court hire next season, for their rugby, netball and cricket teams
Dh1.8m - Dubai Hurricanes' overall budget for next season
Dh2.8m - Dubai Exiles’ overall budget for next season
ANATOMY%20OF%20A%20FALL
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