If you can work you should... But why?

[Tryingtokeepgoing]

So, Rachel Reeves is of the opinion that if you can work you should. However, there are millions of us in the 50+ bracket who can work, but don't need or want to work. We are financially self sufficent, happily (ish) paying tax and spending money supporting the services economy on which so much of the country depends. Why should we work? Altruistically, I see my choice not to work as creating opportunities for progression for others...

Why should we work?
What is achieved by encouraging us to work?
If there are benefits to us working, how can she incentivise us to do so?

caveat - I am not a fan of the Telegraph, but it is a direct quote

“If you can work, you should work,” she said after official figures showed worklessness in Britain rose to its highest level in more than a decade.

If you're financially self-sufficient, I agree that there is no issue.
But I suspect Rachel Reeves is thinking of those people claiming benefits, who choose NOT to work at other people's (ie taxpayers) expense. That's not right.

I think there is a difference between those who can work and financially don’t need to and those who can work but choose to rely on benefits.

DH and I are in our mid 50’s and retire at the end of this month. We financially don’t need to work, we’ve had good careers (DH a doctor and me a corporate finance director) but now want to others things with our lives.

I'm in the 55+ bracket and could work full-time 45+ hour weeks as I did until I was 55, but I don't need to or more importantly, WANT to, so I am using my savings to work part-time for now and will have quit completely by 60.

Well, having more people working drives up productivity for the country.

I guess the personal "incentive" is having more cash in your pocket. Plus the fringe benefits you might get from working i.e. keeping the brain active, good for morale, contact with others etc.

But if you personally don't need/want to work, and you are not using the benefits system, then it's up to you to decide if it's worth your while. I'd probably give up work myself if I didn't have a mortgage and one more child to see through university.

A big part of the problem is that the funding for the current state pension relies on current people of working age continuing to work and pay into the system for c40-45yrs. You won’t be paying anything like the tax you’d be contributing if you were still working full time and the growing trend of people retiring/semi-retiring from 50 onwards is exacerbating that. So it doesn’t matter that you aren’t claiming benefIt’s etc, it’s that you aren’t paying in to the pot in the way it was projected you would.

edit to add, I’m not making any judgements about whether that’s right or wrong, it’s just how the system is

DH was burnt out at 57 and took early retirement after working non stop for 41 years, often long hours and didn't take a lunchbreak. At points has had a second job and studied lots of courses for self progression. I don't care what the government think, he's worked hard and his mental health and happiness if far more important.

LOL. Foreign here and always going for nmw jobs. Even they are not that easy to find and florish into these days. Even they are staffed with many many English born and bred people over 50 there. Go to your local shops and you will see it

If you are financially self-sufficient then I see no problem with not working. I hope to be in that position myself by the time I am 60.

However, I suspect that it is causing problems for the economy through the loss of skills and experience of older workers, and contributing to the recruitment gaps in some sectors.

The issue is your tax and NI pay for current NHS costs and state pension, not your own future needs.

Therefore by not choosing to work you are hitting society as a whole, it's not simply I'm alright jack I can afford a couple of holidays a year and am self sufficient and in good health today at 55 etc.

Not saying I strongly subscribe to that, I want out of the rat race as soon as I can and am loading my pension accordingly - but that is the macro economic reality.

I worked at 18 for 1 year and then got burnout so bad I’ve never worked since I’m 40 and o won’t be able to work again. I have multiple health issues, plus ASD and ADHD. I am a sahm to dc with SEN and I love my life I feel I’m worth so much bringing up my dc and running a household it’s the only thing I can do well.

In our early retirement DH and I will still be paying substantial tax and national insurance.

I don’t think your situation is what she means. I suspect it’s more people on long term benefits who have the capability to work. For example, my mothers neighbours who are out all day fixing cars on the drive, but on benefits and don’t work. 🙄

i know you said about the freeing up a job, but my profession has a massive staffing crisis because everyone leaves in their 40s/50s - but I can’t say I blame them, it’s tough and I can see myself doing the same.

To grow the economy I suppose?
I kind of feel that if you don't need to work, leave the jobs for someone else who does need to, but I suppose that if more people are working the economy may grow anyway and there would be more jobs. I think it's important that old people don't hog all the good jobs at the top though.

There is the other matter of people who don't need to work having 'hobby' businesses, In a way, it's unfair competition if they can afford to underprice themselves, putting others out of business.

Enjoy your retirement!

I’m sure you are, but not as much tax and NI as you were when working right?

I haven't worked for years...... However, DH has paid hundreds of thousands in tax and NI. We have bought stuff (VAT). Our council tax is the top level. We haven't used the NHS, or state schooling. We have paid into private pensions, although yes, we will be taking the state pension. We didn't get child benefit for our second child. He has burnt out, so retired early, to improve his health before it is too late. We are (and myself in particular) therefore economically inactive, but we have more than paid into the system for others.

Don't worry - we'll soon all be taxed so heavily we'll have to go back to work to pay the bills. Won't be any jobs though as the economy will have tanked.

All the private incomes will probably be nationalised! (tongue in cheek joke if that isn't obvious)

The other side of this coin is that people are living longer, if we simultaneously have (mostly higher earners so net contributors) leaving the workforce early and pensioners living longer therefore costing more in pension, nhs etc then you can see how that funding challenge ramps up pretty quickly

I'm 55 and cut down to three days a week 18 months ago. I now can't get back up to full-time which is annoying as I have my deposit saved to buy a place but can't get a mortgage on my PT salary.

The charity sector would seriously suffer if financially self sufficient people at the end of their careers had to go back to doing paid work instead of volunteering.

Very similar although we are no longer living in the UK.

This. You are taking out but no longer contributing even though you are still of working age. If every one did this in their 50s we'd be in even more trouble than we are now.

If she is talking about those who can afford not to work (as opposed to those choosing to rely on benefits) a few things spring to mind:
Are there currently vacancies for all of these people?
In work benefits are a huge drain on public finances, are they intending doing anything about ensuring people earn a fair days wage for a fair days work so that in work benefit reliance is diminished?
Have they considered the huge impact that the loss of voluntary workers will have on the economy?
Does she also mean unpaid carers (and indeed those on the very low carers benefits), and if so, how will that gap be plugged?

Are you actually ‘financially self sufficient’ - if you live to be age 80 or 90?

In my 30s I thought “I don’t think I’ll ever not work - I enjoy it and like the structure etc”. Now, at 42 having changed roles due to company take over etc I’m far more in the “it’s all a load of bs” camp and am reassured by posters going part time in their 50s that maybe I could do that.

on the whole, people should give to society more than we take, but that can be through multiple ways. It’s quite a conservative type comment from Labour.

If your pension is more that £12,700 per year, you are still paying tax. People retiring early are most likely either doing so with a stronger pension than or doing so because they can no longer work physically or mentally. They don't pay NI but they are either still contributing to the tax income or unable to do so. So I don't buy the 'you're not contributing' line.

If they want people to (be able to) keep working as they age then older employees need far stronger rights to support them as they do so. They need time for appointments, possible later start times to allow for slower get ups in the morning, part time. They need to be able to get a job and so more needs to be done to tackle age discrimination in employment.

It's just being naive to think the majority of people can (and will) work full time until they are 67/8 just because Reeves encourages them.