Retirement

Retirement Living No time to stop

Having recently celebrated our own Queen’s impressive career, and the fact that she is still ‘on duty’ at 96, Shire takes a look at the pros and cons of working well past retirement age

As we all live longer, and health in general improves, reasons to stop work in our sixties are less obvious than for previous generations. For those who can, it may well still be the desired option, but as Her Majesty has shown, we can also keep our minds and bodies busy by working well into our seventies, eighties and even our nineties.

Experts at the Institute for Fiscal Studies recently shared a report on the impact of this trend. “Longer working lives offer many benefits but can pose challenges for individuals, employers and policymakers… The desired working patterns of older workers – in terms of hours of work, form of employment or tasks they undertake – may be quite different from those of middle-aged or younger adults.”

More demanding

The number of older people remaining in work is certainly growing. In 2019, 10 million or 61 per cent of 50 to 69-year-olds in the UK were in paid work, comprising almost a

third (31 per cent) of the workforce, up from 21 per cent in 1992. The report continues: “In future, those approaching retirement are increasingly likely to be in more stressful and more cognitively demanding jobs. Currently, older workers in these jobs are significantly more likely to want to work shorter hours but less likely to move to part-time roles. Making sure flexible work options are available should be a priority.” “Flexible Other highlights of the study work include: options should be a priority” • During Covid, older workers (particularly over 65) were more likely to be furloughed, which has led to an increase in those age groups seeking new employment since. • Most older workers do not have recent experience of searching for work: over two-thirds of 55-year-old workers have been with their employer over five years. • Significant numbers of older workers would benefit from more job flexibility: 16 per cent of employed 50 to 69-year-olds would like to work fewer hours. • For some, part-time work acts as a way of making a gradual transition to retirement. • Only 9 per cent of older employees become self-employed in the run-up to retirement. • Half of full-time workers move straight into non-working retirement. • Around 7 per cent of older workers in 2019 wanted to work more hours per week. • Some with long-standing health problems may have preferred or been able to stay in work with more flexibility or support. Over-50s count for a third of the workforce To read the full report visit ifs.org.uk The boost is much-needed

EXTRA HELP IN COSTS CRISIS

The government’s announcement of extra help for Britons facing the fuel and cost-of-living crises has included an added bonus for pensioners. Those already receiving a winter fuel payment of £150 will get a bonus £300 pay-out to cope with the soaring energy prices that we are predicted to see this winter. At the same time, all households are to receive a £400 boost towards their energy bills, meaning many older people are in line for a total of £850 support.

This announcement has been welcomed by experts including Citizens Advice, who described the move as “a life raft for the millions of people struggling to keep their heads above water”, and Martin Lewis, founder of the MoneySavingExpert website, who said the payments were “more generous than expected”.

Retirement Living

When a family is thinking about care for a loved one, they want the best. They want to know the care home they choose will put their loved one’s safety, happiness and wellbeing first.

Care UK’s Deewater Grange care home in Chester provides residential, dementia and nursing care, giving families peace of mind that their loved ones can stay living at the home should their needs change.

Living at Deewater Grange is all about quality of life. Every colleague in the home is passionate about enabling residents to enjoy a fulfilling lifestyle, tailored around their unique needs and preferences. The lifestyle team organises a huge variety of group and one-to-one activities, with plenty going on each day.

The Deewater Grange team are proud to have achieved some great results in the recent relative survey – in fact, 97 per cent of families feel their loved ones are treated with kindness, respect and dignity^. Once their relative has settled into Deewater Grange they are able to focus on spending quality time with them again, just enjoying each other’s company.

With the extra support that our care home offers, new residents are often surprised at what they can do, whether that’s being able to continue with an activity they’ve enjoyed in the past or even discovering new hobbies with our daily activities.

Whether your loved one enjoys a quiet cup of tea in bed before starting the day, going for strolls in the landscaped grounds or a chat over a beer, the team at Deewater Grange will spend time to enable them to continue living life the way they want to.

“Loved ones are treated with kindness”

Deewater Grange is part of award-winning provider Care UK – one of the UK’s most successful care home operators* with over 35 years’ experience of delivering high quality care to older people. See more at careuk.com/deewater-grange

*As rated by the Care Quality Commission in England and the Care Inspectorate in Scotland. ^Care UK relative survey Aug/Sept 2021, based on a sample of seven relatives. Study operated by QRS Market Research, an independent survey agency.

CRACKING THE CODE

Elaine Willis of DRE & Co explains how to spot if your PAYE tax code is wrong – and what to do about it

Many employed taxpayers receive their wage slip at the end of the month and assume the figures are correct, and the tax code being used is correct. If that code is 1257L for 2022/23 then it is probably right; any other code needs further investigation.

Under the PAYE Real-Time Information scheme, employers report to HMRC electronically before making any salary or wage payments, using code numbers supplied by HMRC. Under a system named Dynamic Coding, codes are issued as soon as HMRC receives the notification of a ‘trigger’ from an employer, pension company or the taxpayer themselves (via an entry on their tax return). The code will remain in place until another ‘trigger’ is applied – for instance, new employment, a benefit-in-kind or an increase in salary. In working out the code, HMRC assumes that the employee will continue to receive the same level of pay for the remainder of the

tax year as they have received to date.

HMRC looks to amend a code within the tax year so that there is no delay in issuing a refund where due – or, if the amendment results in an underpayment of tax, so that the taxpayer is not faced with an unexpected bill at the year-end. To achieve this, HMRC uses the information it receives, estimates the amount that would have been owed at the tax year-end and includes this as a ‘restriction’ in the current year’s tax code. Usually, adjustments to collect an underpayment for the current year will not be included in a code if issued after 5 January; instead, that underpayment is likely to be carried forward and collected in the code in the following year.

Increasingly HMRC has been issuing codes to include an estimated amount of dividends or rental income based on the previous year’s tax return information. Tax on such income is not due until 31 January after the tax year-end and therefore HMRC is, in effect, collecting tax in advance. You may wish to contact HMRC to correct the code. Elaine Willis is Payroll Manager at DRE & Co Chartered Accountants in Shrewsbury. Call 01743 241 581 or see dre.co.uk

If your tax return included dividends or rental income, check your code

“HMRC is, in e ect, collecting tax in advance”