Mass early retirement – solution for Rishi Sunak?

I heard an interesting idea on the radio and I thought it was worth a mention.  It really fits with my belief of early retirement being a good thing to plan for, if that’s what you would like to do.  This idea, could be a neat way of helping the economy in a post COVID world.

Anyone who reads this blog will know I’m a huge fan of early retirement, for a compelling number of (personal) reasons:

• work was becoming quite stressful, it was harder than I expected to step sideways into a different workplace
• a health issue which put things into a different perspective
• being able to devote more time to the things I wanted to (fitness, hobbies, travel)
• to have more time for people
• being financially able to
• retiring early has been the happiest time in my life

Now I can add another compelling reason…..

Help rescue the post COVID economy!

Now I can’t claim credit for this idea.

If everyone in their 60s was offered the opportunity of retiring early, ahead of the normal retirement age of 67, what would the effect be?

• Creating an equal number of jobs for younger people who are unemployed.  Many younger people, especially those who work in retail or hospitality, have lost their jobs through a succession of COVID Lockdowns.
• Those younger people will be claiming Universal Credit to cover their living costs (either for themselves or their whole families) and this would include housing costs too.  So you could save having to pay out so many benefits.
• The early retired folk would need some financial support, since they would be retiring earlier than expected but this could be offset by saving the cost of keeping a few million younger people unemployed
• Many younger people have been saving as best they could, while employed, for their first step on the property ladder.  They would have been encouraged to do so by the Help to Buy ISA – a government backed savings scheme.  Trouble is, anything a young person has saved up might have to be spent on living expenses before they can claim Universal Credit (the threshold is £16,000).  So you can allow young people to be employed, keep saving and eventually buy a property.
• Mental health, often talked about these days.  Opening doors for younger people to get a job will almost certainly provide some hope, thereby improving their mental health, instead of being unemployed and feel despondent.
• Doing the above will put money into people’s pockets for them to spend.  This will get the economy sparked into life.  People will pay taxes (income tax, VAT, fuel duty and so on) so much of the money flow will become circular i.e. it will find its way back to the Treasury

Of course you can’t trade an older person for a younger person just like that.  What about training, what about the years of experience and wisdom held by older workers?

Well I can’t claim to have all of the answers here but at least it’s a germ of an idea.  Our Government has taken some very bold steps with a furlough scheme (which will run for at least a year, perhaps more) and all kinds of other business support schemes have been provided, all at an eye-watering price.