Nearly three quarters over 50s say cost of living is biggest financial concern

The rising cost of living is the main financial concern for there quarters of people (73%) over 50 according to new research by SunLife, rising to 78% for women.

The research found that only 18% of retirees and 9% of non-retirees are free from money worries in 2023.

After the rising cost of living, people over 50 are most worried about unexpected costs, with almost 1 in 2 (44%) saying it’s their biggest financial concern.

Over 1 in 3 (37%) over 50s worry about running out of money during retirement. And just under 1 in 3 (27%) are concerned about how their children and/or grandchildren are managing financially – overtaking pension value as the third biggest financial concern.

Overall, a higher percentage of women than men report being worried about each concern, except for the value of their pension, where 22% (-7% since 2022) of women versus 27% (-3%) of men report being worried. In fact, men are 50% more likely to have no financial worries (15% – the same as in 2022) compared to women (10% – up 3% since 2022).

Higher day-to-day costs show that 3 in 5 people (59%) report spending more on their weekly shop in 2023, and 41% have increased their spending on fuel and transport.

Over half of over 50s are now cutting back on takeaways (53%) and meals out (52%). And 47% have cut back on activities and days out, 46% on clothing, 42% on holidays and 39% on charitable giving.  Interestingly, one area where we’re not cutting back is spending on our pets! It seems we don’t want to (or can’t) stop spending on our furry friends.

SunLife’s CEO, Mark Screeton, sais “SunLife’s second Life Well Spent Report tells us a lot about the over 50s’ thoughts and spending habits during the current cost of living crisis. We’re once again having to spend even more on groceries and cut back on the things that bring us joy, like meals out and holidays.”

“The fact that 44% of us worry about unexpected costs speaks volumes to how meticulously people are planning their budgets – and how an unexpected bill like a burst pipe or car breakdown can throw a big spanner in the works. I hope our findings can at least show those worrying that they are not alone in this.”