Less than £24 a day for pensioners

10/10/2011

A study shows that a quarter of those over the age of 55 are forced to survive on an income of £24 or less a day.

Furthermore, roughly 7 per cent of over-75s still have ‘worrying’ mortgage debt to pay – with the average amount being £46,873.

Insurance company Aviva, who compiled the report, spoke to more than 10,300 pensioners about their finances. This is Money reports that experts have warned that millions in this age group are facing ‘an unhappy and impoverished’ old age.

Around 23 per cent of over-55s must survive on a post-tax income of £750 or less each month.

The poll, conducted by Aviva every three months, found clear evidence of older people ‘cutting discretionary food spending and opting for cheaper options’.

Over-55s’ lack of savings combined with rising inflation has put them in an extremely vulnerable position. An Aviva director, Clive Bolton, stated: “There appears to be a hard-core set of people who are either unable or unwilling to save who need to be educated and encouraged further.”

One in six pensioners has no savings – not even money in a basic bank account, and will be forced to work until they are physically no longer able to do so.

Simon Rose, from the campaign group Save our Savers, told the Mail Online: “No matter how bad the climate for savings, people need to get into the savings habit.

“Unless you save for a large part of your working life, you are going to face an unhappy and impoverished old age.”

Tags; Income Worries and Debt, Housing Debt and Bills, Budgeting Advice, Retirement Money Problems,

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