A third of over 55s struggling financially, study shows
The soaring cost of living is having a devastating impact on the finances of older people, a study shows.
More than two-fifths of 55 to 64-year-olds are struggling financially or are ‘up to their neck in debt’, insurer Aviva found.
Across all over-55s, more than a third feel like they are having difficulties with money.
Struggle: More than two-fifths of 55 to 64-year-olds are struggling financially or are ‘up to their neck in debt’, insurer Aviva found
The over-55s, who typically spend more on food, energy and fuel, are being hardest hit by inflation with most saying they would need more than £257 per month extra to feel financially secure.
This figure rises to £310 a month amongst the 55-64 year olds.
Inflation stands at a 40-year high of 10.1 per cent and households are bracing for an increase in energy bills from £1,971 to £3,549 in October.
Aviva is forecasting the rate of inflation will hit 15 per cent when bills hike – higher than the Bank of England’s forecast of 13 per cent.
The insurer said price rises for over-75s could climb to 18.8 per cent due to their spending habits.
Three-quarters of over-55s are looking for ways to boost their income, with almost a quarter selling off unwanted items.
Some 55 per cent shop around for best deals in bid to make their money go further, while over a third shop for reduced food at supermarkets on a regular basis.
Some 28 per cent have cancelled unused subscriptions and one in five get paid to test products and do market research.
In order to make ends meet, some 8 per cent say they have had to delay their retirement or continued to work past retirement age.
The retired are set to see a substantial rise in state pension next year.
All eyes are on September’s inflation figure, which is traditionally used to uprate benefits the following year, whenever it is higher than average earnings growth or 2.5 per cent.
If by next month inflation has reached the Bank of England’s forecast 13 per cent, the new state pension would breach £200 a week for the first time.
‘Despite the support of the rising state pension, inflation is bringing pressures to the incomes of those both approaching, and already in, retirement,’ said Alistair McQueen, head of savings and retirement at Aviva.
‘Those aged 55-64 years old, who are often considered to be the “sandwich generation” as they support their elderly parents and their grown up children, are also the ones who tell us they are struggling most, financially.
‘Unfortunately, no one can completely shelter from the impacts of rising inflation at the moment, but those taking steps to boost and stretch their income can help make their money work as hard as possible for them.’
