More Work, Less Dementia?

Research suggests that working as late in life as possible may be effective in avoiding diseases such as Alzheimer’s according to research conducted by the Institute of Psychiatry at King’s College London.

Researchers have studied 1,320 dementia patients, including 382 men, and found that men who continued to work late in life helped keep their brains sharp enough to delay dementia.

Approximately 700,000 people in the UK have dementia. Experts currently believe that by 2051 as many as 1.5 million could suffer from the disease, which costs the country’s economy around £17 billion each year.

Dementia is believed to be caused by a mass loss of brain cells. Experts think that there is only one way to guard against it – build up as many connections between cells as possible by being as mentally active throughout life as possible – Cognitive reserve.

Past evidence shows that a good education can reduce the risk of dementia, and the latest study supports the idea that mental stimulation that continues until late in life reduces the risk of dementia.

It seems that those that opted to retire lat have developed Alzheimer’s at a later stage in life compared to those who left work early. Each additional year of employment is thought to add approximately six weeks before the onset of the disease.

One of the researchers involved says: “The possibility that a person’s cognitive reserve could still be modified later in life adds weight to the ‘use it or lose it’ concept where keeping active later in life has important health benefits, including reducing dementia risk.”

More Work To Confirm Results

Professor Lovestone adds: “The intellectual stimulation that older people gain from the workplace may prevent a decline in mental abilities, thus keeping people above the threshold for dementia for longer.”

But more research is needed to be sure of the results and prevent dementia completely.

The chief of the Alzheimer’s Research Trust which funded the research says: “More people than ever retire later in life to avert financial hardship, but there may be a silver lining – lower dementia risk.”

Though the small sample size of the study makes it difficult to draw firm conclusions from the study.

Dr Sorensen from the Alzheimer’s Society says: “There could be a number of reasons why later retirement in men is linked to later onset of dementia.

“It could also be that working helps keep your mind and body active, which we know reduces the risk of dementia.”

A Spokesman for the Department for Work and Pensions said: “Not only can it mean more income, but social networking has increases activity.

“We also find that many of today’s older workers are choosing rejecting the cliff edge between work and retirement in favour of a gradual step down. And employers should help them do this.”

What Do You Think?

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As far as crazy questions go this is probably one of the best you have ever seen! Why on earth would you want to think about your pension and your retirement as soon as you have started work? The really crazy thing is that you should be thinking about your retirement the minute that you have any surplus cash, and funds which you can put away.

While for many of us currently in employment, our retirement date has been further pushed back to 65 years of age, it is never too soon to start saving for your pension, and making use of all of the latest tax incentives you can take.  While the retired population of today have a state pension coming in, even though on many occasions it is being reduced year on year in real terms, this is a “luxury” which many of us currently in employment will not have. 

The social services system in the UK is under great strain, and while there are plans afoot to transfer funding to the people who actually need it, there is no doubt that as the population grows both naturally and through immigration, the benefits we take for granted today may not be their tomorrow.  There is also the double whammy of an ever ageing population, which will take more and more out of the state pension and benefits pot.

The UK government have for some time been very vocal in their support of private and company pensions schemes, offering  a whole range of tax incentives for those looking to move away from the state system.  While this is may seem like a give away, it is really an investment into the future, and a way in which they can try to take some of the pressure off the state system. 

However, the governments plans to encourage private and company pensions are in disarray because of :-

· a lack of protection for many company schemes.
· increasing tax revenues from pension investment income.
 
As they say, on one hand they giveth you and on the other they taketh…..

As the internet continues to bring the latest news, views and offers straight to your door step, many people are now asking about the role of Independent Financial Advisers, and whether they are actually worth the money they charge. Surely it is time to “go it alone” and look after your own affairs online?

While those with substantial experience of the financial markets themselves may well be able to “cut out the middle man”, the financial markets are still very dangerous for those who do not fully understand them.  What level of pension are your after? What can you really afford? Should you use up the equity in your home? Which tax free investments should you consider?

For many people these questions may as well be written in a foreign language, as they may mean nothing - where do you start? Who do you blame if it all goes wrong? What protection do you have?

For those who are not up to date with the financial markets and the vast number of products on offer, it is still highly advisable to go through your own Independent Financial Adviser.  They do have the experience, they do have the knowledge and above all you are protected if they give you the wrong advice.  Cutting corners with regard to your future financial well being can be incredibly risky, and should be averted unless you know what you are talking about!

Despite all of the back slapping and hand shakes about how they have changed the NHS, the UK authorities are under severe pressure to improve the return on investment.  A report out this week has been very critical of the funding arrangements for the NHS and their ultimate use. So what next?

As every tax payer in the UK will be aware, the budget for the NHS seems to grow and grow (if we believe government figures) yet the services seem to be getting worse in many areas.  A recent government sponsored report was released to calls of “we told you so” from many in the industry who have been very critical of changes and movements within the NHS.

There has been a massive increase in management, red tape and an introduction of the competitive internal market within the NHS, over the last few years.  These changes have not assisted with the level of care on the front line, and caused much anger and unease with many workers.  We are also experiencing an increased level of industrial action from the main unions, who are fighting for the future of the NHS.

So what does this mean in the long term?

It now seems inevitable that at some stage, the tax payer will not be able to depend upon the NHS in its current form.  We have for some time seen more and more services farmed out to the private sector, where charges are introduced to what have been free services.  We have also seen a massive growth in the area of private healthcare, and this is sure to continue and grow in the years to come.

Unfortunately, the NHS is not a bottomless pit and at some stage there will need to be a major restructuring of the original format.  Times have changed and costs have spiralled over recent times, reaching levels that have denied many people the treatment which they have “paid for”. 

Private healthcare is the way forward for many who are looking to protect themselves and their loved ones in the future.

There are quite a few benefits and rules that you should know about Roth IRAs, especially if you are considering using a Roth IRA for your retirement savings. The Roth IRA came about in 1998 as a direct result of the 1997 Taxpayer Relief Act. The great thing about a Roth IRA is that there are no deductions for the contributions that are made since the earnings are tax free upon withdrawal, that is as long as still meet the requirements. Another benefit offered to Roth IRA owners is that certain withdrawals avoid the early distribution penalty and once age 70 ½ is reached the need to take minimum distributions is eliminated.

For those interested in using a Roth IRA for their retirement funds it is important to realize that the biggest benefit of all is that all the money saved for retirement is done so completely tax-free. This is a huge benefit when you withdraw the money. However, the disadvantage is you don’t get a tax deduction for your contributions to your Roth IRA. That’s the trade off but it is worth it in the long run for many.

However, it’s not the best decision for some people. Keep these things in mind when making a decision. When do you plan on withdrawing the money from the Roth IRA? At this point in time what tax bracket do you anticipate you will be in? And finally, before the withdrawal date arrives what do you anticipate you will earn? Considering all of these factors will help you decide if the Roth IRA is for you. But, if you are like the majority of people it will be. The reason a Roth IRA is better than a traditional IRA is that it contains after tax money. If you are able to contribute as much as possible to the fund then you will be taking advantage of your money for retirement.

Other benefits of the Roth IRA is that there are no minimum distribution rules. So, if you can survive on other investments or savings after you retire then you are not required to withdraw your Roth IRA when you turn 70 ½. The result of this is that the money in the Roth IRA grows tax-free until it is withdrawn. Another benefit that Roth IRA users appreciate is the ability to take some early distributions without being penalized with any early distribution penalties. The overall benefit of the Roth IRA for retirement is that individuals are able to make contributions more easily and they are also able to withdraw money easily.

If you already have an IRA you may convert yours to a Roth IRA. Another way to do so is to contribute regularly to a Roth IRA. You must review the rules surrounding the Roth IRA before you are eligible to set one up, but many people are eligible and benefit considerably from contributing to a Roth IRA for retirement.