Older Britons are beginning to feel the pinch according to a survey from insurance company Aviva.
The company’s Real Retirement Report suggests that the last 12 months proved to be testing times for older generations, with inflation affecting their incomes, growing debts and diminishing capital.
The study showed how average incomes among the over 55s have dropped by 4%, with mortgage debt rising by £10,000 and more people in this age bracket having little to no savings to speak of.
It seems the cuts of the Coalition Government are starting to hit home. Measures to tackle the national deficit are hitting older members of society most. The average income for over 55s has fallen 4% since February 2010, and in the long term retired (over 75) this has plunged even further.
Aviva’s Clive Bolton says: ‘The Real Retirement Report provides a valuable opportunity to look back at how the finances of the over 55s have changed over the last 12 months. The picture it reveals is concerning, as while incomes have fallen and savings pots grown smaller, mortgage debt has increased and inflation has hit key expenditure pressure points.
’We know from previous reports that many people are looking to work into retirement - and for people in debt this may be a good solution. However, looking forward, we would urge people to think about their retirement sooner as life expectancy figures indicate more of us will be living longer and we will need to increasingly provide for ourselves.’