Credit, Collections & Insolvency News
A quarter of adults aged over 55s lack confidence in their current financial position and nearly half have experienced a reduction in their disposable income, Paragon Bank research has revealed.
The survey of over 3,000 people aged 55 or over found that 25% felt unconfident in their current financial position, compared to 44% who felt secure about their financial standing.
Nearly half (46%) of respondents experienced a reduction in their disposable income during the first quarter of the year, with a higher proportion of women (49%) experiencing a downturn in income compared to men (43%).
Those aged between 55 and 64 were more likely to report a significant reduction in disposable income (11%) than older groups. Just 8% of those aged between 65 and 74 reported a large reduction, with 9% of 75 to 84-year-olds citing substantial falls.
A quarter of respondents claimed they lacked confidence in their ability to meet energy bill payments, with 16% worried about meeting other household bills.
Rising costs have impacted how this demographic spend their money. Nearly half (46%) said they had reduced home energy usage during the first quarter of the year, with just over a quarter (26%) reducing how much they spend at the supermarket.
Other areas where over 55s have cut back include dining out (37%), car usage (30%), holidays (27%), concerts or theatre (23%), days out that require an entry ticket (20%) and cinema (19%).
Derek Sprawling, Paragon Bank Director of Savings, said “The cost-of-living issue and inflationary environment has impacted all of us in some way, but perhaps those who are on fixed incomes or receiving a pension have felt the impact more keenly. A quarter of over 55s have experienced a reduction in their disposable income and, as a result, have been cutting back on spending, from the weekly food shop to days out.”
“In this environment, it’s important that people’s money is working as hard as it possibly can for them. We have seen an increase in savers switching their money as they seek better rates on offer, but there is still a huge amount of money sitting in bank accounts earning very little. In this inflationary environment, it’s vital that people shop around for the best rates because they could be losing out.”