5: Friday Media Release – National Family Week
Investing Social Capital in a Relational Pension
Given the importance of relationships for wellbeing, people should invest in those relationships which provide support, happiness and fulfilment in retirement, as well as investing in a financial pension. As with financial pensions, relational pensions are best invested in over a long period before retirement.
Research released by the BBC yesterday found that half of UK adults between 20 and 60 are making no contribution to their financial pension pot.1 Relationships Foundation, a Cambridge-based think tank, believes many people are also failing to invest in their relational pension pot. National Family Week seems a great time to review our family relationships and invest some social capital in our relational pensions.
Researcher Peter Lynas commented: ‘Pension companies ask how much money people believe they will need when they retire – we are asking which relationships people will need. You can’t expect the children you’ve barely seen while you have been working long hours and weekends to suddenly take time out to look after for you when you become old and lonely.’
A relational pension is more interested in social capital than financial capital. The good news is that it doesn’t involve pushy salespeople, nor do you need spare cash. However, like a financial pension it involves a regular commitment – to invest in those relationships that will be important when you retire.
With high levels of divorce and family breakdown, an increasing number of people don’t have a partner or children who are prepared to care for them as they get older, leading to isolation and loneliness.2 Pensioners now outnumber children for the first time in the UK, as more and more people live longer. Increased life expectancy, fractured families and falling pension funds, mean that retirement is looking less appealing for many. Research from Help the Aged has revealed that nearly a million old people say they are often or always lonely – they have been dubbed the ‘Eleanor Rigby’ generation.3
The Relationships Foundation suggests the following:
- You need a relational pension as well as a financial one. We’re not denying that you’ll need to put some money aside but it won’t get you very far if you have no-one to enjoy it with.
- Money isn’t the only source of security.
- Relationships make you happy. The research is overwhelming – relationships influence our wellbeing and happiness more than any other factor.
- We are urging the government to give every parent of school-age children the right to a weekend day off. This will give hardworking parents the chance to spend time with their children – who will be more inclined to return the favour in later life.
- Companies like BT and ASDA help their workers relocate to be nearer family. We want to see more companies helping their employees invest in their relational pensions.
- Multi-generational living and co-location enable families to be physically close to one other to offer practical help and support.
Peter Lynas continued: ‘In this tough financial climate setting aside money for a pension can be difficult. Now is the time to make a conscious decision to invest in your relational pension. Investing in relationships now will make a big difference later in life.’
Notes:
For more information see Investing in Relationships.
1. http://news.bbc.co.uk/1/hi/business/8068728.stm
2. See Older people and Wellbeing, IPPR, 2008.
NOTE TO EDITORS:
Relationships Foundation, established in 1993, is a Cambridge-based independent think tank seeking a better connected society. It studies the effect that culture, business and government have on relationships. It proposes new ideas for strengthening social connections, campaigns on issues where relationships are being undermined, and trains and equips people to think relationally for themselves. Previous publications are available on our website. National Family Week runs from 25-31 May.