2011 a year to forget for over-55s - Money - News - Moneyfacts

News

2011 a year to forget for over-55s

2011 a year to forget for over-55s

Category: Money

Updated: 07/12/2011
First Published: 07/12/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Many over-55s will be looking forward to seeing the back of 2011, with savings and income both in decline.

In fact, figures from Aviva show that the UK 's over 55s are 'significantly poorer' than they were 12 months ago.

While average monthly income for the over-55s has risen in the last quarter from £1,216 (September 2011) to £1,285 (December 2011), it has declined by 4% from £1,335 this time last year.

And with year-on-year inflation running at 5.4%, this actually means the over-55s are even worse off.

The typical person over 55 now has £11,153 in savings and investments, which is 27% lower than December 2010 when the average was £15,262 – partly because more people have found themselves dipping into funds to top up their income in order to meet day-to-day costs.

But, it is also due to the fact that more people have started saving, as the number of over 55s with no savings has fallen from 16% (December 2010) to 15% (December 2011).

In fact, the number of non-savers has hit its lowest level for two years (41% December 2010 compared to 36% December 2011).

The average unsecured debts of the over-55s have increased to £21,901 (December 2011) from £19,878 in March 2011. However, the total debt of those with mortgages and other debts is £80,849 (December 2011), which is down from £84,985 in March 2011.

"While the average amount the over-55s have in savings is down this is partly due to the fact that more people are now starting to save, which is good news," said Clive Bolton, 'at retirement' director at Aviva.

"However, with income levels falling and inflation rising, it is going to make it difficult for some to maintain their standard of living and to secure a comfortable retirement income for themselves.

"The importance of planning for your income in retirement cannot be stressed enough, and the earlier people begin the more they will potentially boost their financial security in the long term."

Find the best pension for you -Compare pensions.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

77% of Christmas gifts unwanted

Research from Policy Expert has revealed that while Brits spend an average of £424 on presents for friends and family, more than three quarters (77%) of these gifts may be unwanted.

New Year tips to improve children’s money skills

How many have better budgeting as their New Year’s resolution? As with many things, these skills are best learned when young, so Lemonade Money has come up with some tips to help parents make their children more financially savvy.

Money worries lead to Christmas on credit

Money worries are putting Christmas at risk for up to five million Brits, with 10% saying they regularly worry about money in the lead up to Christmas, and the same proportion feeling stressed about how much they are spending.
 
Close