Credit, Collections & Insolvency News
More than two-fifths of 55 to 64-year-olds are ‘struggling financially’ or are ‘up to their neck in debt’ against an average of 35% of people surveyed in the 55+ age group according to research by insurer Aviva.
The research also found that while more than a third of all over-55s said they are having difficulties with money. The research found that for over-55s, most believe they would need more than £257 per month extra to feel financially secure. This rises to £310 a month amongst 55-64 year olds.
Three quarters (75%) of those who say they are struggling financially are taking measures to improve their financial situation by trying to boost their income, or making their money go further by stretching how they spend their hard-earned cash.
Almost a quarter (24%) say they ‘sell unwanted and unneeded items in places like car boot sales or online marketplaces’. Whereas one in five (19%) get paid to test products and do market research. One in twelve (8%) say they have had to delay their retirement or continued to work past retirement age in order to make ends meet.
Alistair McQueen, Head of Savings and Retirement at Aviva said “Unfortunately the headline inflation figure – 10.1% in July 2022 – is just an average. Our personal inflation will heavily depend on our own spending patterns. If, for example, you spend more on goods experiencing higher inflation (i.e. food, energy, fuel), your personal inflationary experience may be well above this headline rate. What’s more, The Bank of England currently forecast inflation to hit around 13% in Q4 2022 – but this may increase further as a result of higher than expected figures in July. It’s a worrying picture but it’s encouraging to hear that people are taking matters into their own hands to enhance and protect the money they have.”
“Despite the support of the rising state pension, inflation is bringing pressures to the incomes of those both approaching, and already in, retirement. 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.”
As well as attempting to boost incomes, top of the list of steps the over 55s are taking to make their cash go further is to ‘always shop around for best deals’ (55%). This is closely followed by almost half (46%) using loyalty schemes and bonus programmes to save points or to find offers, discounts, vouchers and other money saving perks (e.g. supermarket loyalty cards). More than a third (35%) shop for ‘yellow sticker’ (reduced) food on a regular basis, and more than one in four (28%) have cancelled unused or underused subscriptions.
Aviva uses official ONS data each month to estimate how inflation differs by age group. The latest analysis (17th August) shows that, from an age perspective, inflation continues to hit older people harder, on average. This means that those over the age of 55 today are experiencing above average levels of inflation (above 10.1%). This is being primarily driven by older households spending a greater proportion of their (typically smaller) budgets on food and domestic energy. Both of which are experiencing inflation above the headline rate, at 12.8% and 70.3% respectively – figures that are not expected to fall again any time soon, as global energy prices rise.