• March 28, 2024
 Banker; Deal or no Deal?

Banker; Deal or no Deal?

Changing circumstances are a major factor when preparing and updating a will for clients. Typical considerations include family dynamics, property ownership, and retirement plans – all of which need to be scrutinised well in advance of any changes occurring. However new schemes are being introduced which could open doors later in life, in ways which you may not have contemplated for your clients before.

Planning for retirement is what many working 50 somethings usually look forward to, but what about planning a complete career change — would your clients consider becoming a banker, for example?

Apprenticeship schemes are usually associated with the 16 to 21 year age bracket. Barclays Bank however is about to launch an apprenticeship which is specifically targeted towards the over 50s. Are you in favour of such schemes? Would your practice consider following suit, offering a similar arrangement to support older people?

This is an area which you will need to help clients analyse, as retirement may not be what they expected. Having the freedom to remain in the working environment and learn new skills could be an effective way for people to not only keep their minds active, but also secure a safer future financially.

Examine recent figures:

 

  • There are over 21 million people aged 50 years and over in the UK – over a third of the total UK population — with 10.3 million being aged 65 or over, and 1.4 million aged over 85.
  • There are over 12 million people of state pension age (currently 60 for women and 65 for men)
  • Each year, about 650,000 people turn 65
  • There are now more people in the UK aged 60 and above than there are under 18
  • There are more pensioners than there are children under 16
  • The numbers of centenarians has nearly quadrupled since 1981, from 2,600 to almost 12,000 in 2009

 

Reflective of the above statistics, would you be in agreement that perhaps working past the current retirement age is a reasonable consideration? Now that the nation is living longer, people also have to work longer to support themselves. There is also the issue that many over 50s have been subject to redundancy or have been forced out of their job. If this unfortunately occurs then this new programme offered by Barclays could provide a much needed safety net. Opportunities aimed at older generations do not seem to be as prevalent as perhaps those aimed at younger generations. Could other businesses follow suit?

Do you think your clients would want to try something different?

Promoting their scheme, Barclays stated, “Those accepted on the scheme will be expected to work their way up from the bottom, just like graduates.” Given most people in their 50s have had many years’ work experience, would starting from the bottom of the career ladder be viewed negatively?

Mike Thompson, head of apprenticeships at Barclays, believes the older generation will bring new skills to the table. “Older people have more life experience, and can show more empathy. They will have had a mortgage; they will know how to budget and how to support our customers.”

Many would agree that knowledge is power and life skills perfected over many years and work experience coupled with the ability to deal with others empathetically would be some of the abilities required.

When you consider all implications, the pros seem to outweigh the cons. Keeping active and boosting eventual retirement funds, coupled with job satisfaction potentially enhancing quality of life, can only be a good thing. But what about those who simply feel they have worked hard for many years and believe they would just like to enjoy the ‘golden years’ as they wish?

What are your views on this subject?

 

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