UK pensioners are financially worse off today than they were one year ago, says Aviva.
While the average income for over 55’s has dropped since this time last year (GBP1,335 per month last year compared with GBP1,285 per month today), the biggest worry is savings, the insurer said.
The typical person over 55 now has GBP11,153 saved away – 27 per cent less than they had last year. This is partly because people have found themselves dipping into their funds to meet day to day costs.
Clive Bolton ‘at retirement’ director at Aviva said, “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.”
Unfortunately the woes don’t end there for UK’s pensioners. On top of smaller wages and savings, unsecured debt for over 55’s has risen adding even more strain to the demographic.
The average unsecured debt for over-55s has increased to GBP21,901 (December 2011) from GBP19,878 (March 2011). However, the total debt of those with mortgages and other debts is GBP80,849 (December 2011), which is down from GBP84,985 in March 2011.
But it’s not all bad news. The average house owned by a retiree is worth GBP238,284, which is 46 per cent more than the average UK home (GBP163,311).
Bolton finished by adding, “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.”
