Wes Streeting, the shadow health and social care secretary, has said Labour would abolish the cap on doctors’ pensions which he believes would reduce waiting lists “and will inevitably save lives”.

The MP for Ilford North claimed the “crazy” cap deters many experienced doctors from working late into their careers.

He told the Telegraph: “I’m not pretending that doing away with the cap is a particularly progressive move. But it is one that sees patients seen faster, and will inevitably save lives. I’m just being hard-headed and pragmatic about this.”

The lifetime pension allowance, which was frozen last year at just over £1m until 2026, is the amount that any individual can save into a pension tax-free.

A second cap applies to the amount accumulated in a pension without incurring tax.

Under current rules doctors are unable to opt out of paying into their NHS pensions even if they have reached the cap, resulting in some high-earners taking early retirement.

“Ageist and insulting” was the verdict of one resident when Elmbridge Borough Council in Surrey turned down a 220-home retirement village proposal last autumn.

But elsewhere, new partnerships are being formed between local groups and a new breed of more socially conscious developer set on building communities for older people that support positive ageing and reanimate the towns and neighbourhoods they call home. A confluence of factors means these partnerships are very likely, in the next decade, to draw billions of pounds of baby-boomer and pension fund money into towns and cities.

The first driving factor is growing concern about the future of towns. Council leaders are concerned that the damage to retail from online shopping and Covid is irreversible. Plus no one knows by how much town-centre office space will shrink.

Local politicians understand the vital role of town centres as social hubs and meeting places at the centre of how society functions. So, they are urgently looking to attract investment and find a sustainable future for the burgeoning stock of empty commercial space.

At the same time, major investors are looking for ways to have a greater social impact. For some, such as AXA Real Estate-owned Retirement Villages Group, the idea of investing patient capital or pension fund money to build high-quality housing for older people, while contributing to the post-Covid renewal of towns and cities, is exciting.

Last, but not least, is the demand factor. Baby boomers have more wealth than any previous generation of over-65s, a greater desire to stay connected, and a preference to be closer to town centres and play an active role in communities.

Millions of people living in rural England are at risk of being ‘left behind’ and missing out on their fair share of future prosperity following the UK’s withdrawal from the EU, council leaders warn.

The Local Government Association (LGA) set up a Post-Brexit England Commission to examine the challenges and opportunities faced by non-metropolitan England. Its final report, published at the LGA’s Annual Conference in Bournemouth on 4 July 2019, argues that the challenges facing rural areas can only be met by passing down greater powers to local areas.

Towns and villages outside the big cities are facing unique challenges but are increasingly frustrated that the levers of power continue to be held in Westminster and Whitehall. 

LGA analysis finds the crucial issues faced by communities outside of England’s cities include:

A disproportionately ageing population which will see the majority rural areas reaching a “tipping point” of over 50 retired residents per 100 of working age residents by 2030, as younger people struggle to find jobs and homes locally and move away. Many council areas are already at that level today.

• Durham currently has 53 retired residents per 100 of working age which is forecast to rise to 60 retired residents per 100 working age by 2026 and 76 retired per 100 working age by 2041.
• North Norfolk has 63 retired residents per 100 of working age which is forecast to rise to 70 retired residents per 100 working age by 2026 and 86 retired per 100 working age by 2041.
• West Dorset has 54 retired residents per 100 working age which is forecast to rise to 67 retired residents per 100 working age by 2026 and 88 retired per 100 working age by 2041.
• Rother has 58 retired residents per 100 working age which is forecast to rise to 69 retired residents per 100 working age by 2026 and 89 retired per 100 working age by 2041.

Businesses that are on average 30 per cent less productive per job than urban areas with a major town centre, as economic growth in cities is fast-tracked by national Government through devolution deals and local industrial strategies.

Poor mobile and broadband connectivity across communities outside cities with only 42 per cent of rural residents receiving a 4G signal from every major mobile network operator in their homes.

Without their fair share of investment, councils are concerned that the brain drain away from rural areas and towards bigger cities and towns will continue. A new survey carried out for the LGA found seven in ten rural residents believe councils are best placed to improve their local areas and deliver the services communities desperately need. In sharp contrast, just 2 per cent said they believed central government was best placed to meet the needs of rural areas.

The LGA is calling for the Government to use the Spending Review to address the £8 billion overall funding gap facing councils by 2025.

Government also needs to recognise the growing sense of disconnection in rural England and the historic opportunity by giving councils the powers and freedoms to seize the initiative and make sure their communities and businesses can thrive.

More than 1m childless people over 65 are ‘dangerously unsupported’

More than 1 million people aged over 65 without children are “dangerously unsupported”, and at acute risk of isolation, loneliness, poor health, poverty and being unable to access formal care, according to a report.

The number of childless older people in the UK is expected to double by 2030, putting huge pressure on a health and social care system that is already struggling to support the vulnerable, warned Kirsty Woodard, founder of the organisation, Ageing Well Without Children (AWwoC).

“Read any report on inequalities on ageing and you’ll see the adverse impact of being isolated with poor support networks, loneliness, poor health and a low income,” said Woodard. “Certain groups will be highlighted as being particularly at risk, carers for example, people from the LGBT communities, people with disabilities.

“However, one group you will hardly ever see mentioned despite being overrepresented in many of the above at risk categories is people ageing without children – even though they are disproportionately represented in every one of those categories.”

According to Woodard’s analysis, individuals ageing without children have worse health, worse health behaviours and higher mortality rates than parents. Those who are not childless through choice have higher levels of depression and anxiety as they age.

More people are taking out so-called drawdown pensions without taking advice, the City regulator has warned.

The Financial Conduct Authority (FCA) said 30% of consumers go in to drawdown without getting guidance.

That compares with just 5% before the pension freedoms were introduced in April 2015.

It also says that those who access drawdown policies before the age of 65 typically stick with their current provider, rather than shopping around.

Drawdown pensions allow people to withdraw as much money as they like at any one time.

The FCA said twice as many consumers are now using drawdown rather than annuities, which provide a fixed income for life.

It is also worried that too many annuity providers are leaving the market, which it said could bring a risk of weakened competition.

The FCA said that withdrawing money from pension pots had become “the new norm”.

However, the pensions industry has disputed that claim.

According to the Association of British Insurers (ABI), 100,000 people take money out of their pension pots every quarter.

But that is small compared to the 4.7 million people over the age of 55 who leave their pots untouched, the ABI said.

The FCA report said that 52% of fully-withdrawn pots were not spent, but were put into other savings or investments.

Some of this was due to “a lack of trust in pensions”, it said.

Only a quarter of people withdrawing cash spent some or all of it.

“Contrary to the concerns expressed before the pension freedoms, we did not find that most consumers spent this money on consumer goods and services such as cars and holidays,” the report said.

Of those who took all the money out of their pension pots since 2015:

32% put the money into Isa accounts or other savings plans

25% spent some or all the cash – for example, on home improvements or a car

20% invested the money elsewhere – in property, shares or other businesses

14% used the money to pay off debts 9% unknown

As a result some consumers may be paying too much tax, or missing out on investment growth, the FCA said.

The FCA is considering asking the government to allow consumers to access pension savings early, while continuing to pay full contributions into their existing pension plan; and make it easier for people to compare – and shop around for – drawdown policies.

“The UK’s most senior judges dismissed the appeal by a man who claimed he had been the victim of age discrimination when forced to retire at the age of 65, but they ruled that employers must be able to justify imposing mandatory retirement ages.”

I can see both sides of this. I am involved with a charity which felt obliged to allow 2 members of staff to stay on past 65 even though their performance had gradually declined and their staying on was creating a “dead man’s shoes” issue in terms of our succession planning.

On the other side of things my dad continues to work part time well past retirement age with a public sector employer to top up his pension.

On balance I do feel this judgement which enables companies to have an enlightened retirement policy is good news – as long as they exercise it fairly.