Pensioners pay the price for failing to predict a long life according to The Times’ financial editor, Patrick Hosking. The report from the Institute of Fiscal Studies shows that women aged between 50 and 60 are underestimating how long they are likely to live by an average of four years, therefore exposing them to the risk of a poorer old age. Men in the same age bracket are too pessimistic by about two years. The failure of people to understand how long they are likely to live means their savings, and in particular their defined contribution pensions, may prove inadequate.
Brian Groom, employment editor at The Financial Times has reported on OECD data about the ‘Anglo social’ employment model, which appears to create jobs, but skills remain in short supply. When comparing the British labour market with that of our European and American counterparts from 2006 to 2012, the UK and the US both showed great strength in creating jobs, taking the number of employed people back above the pre-crisis levels, but this has been counterbalanced by concerns over the quality of those jobs, a lot of them part-time or temporary, and a poorer productivity performance than the average for developed countries.
The average price of a home was unchanged at £163,853, this month but down by 1.2% for the year. Nationwide said that job creation would remain a key factor in housing market conditions.
Retailers are in high spirits after sales rose for the third month in a row. The CBI found that 49% of retailers reported an increase in sales volumes compared to a year ago. Only 16% reported a fall, the most positive mix of responses since June.